The city’s Growth Fund committee voted unanimously to approve a draft plan for funds, which the city received under the CARES Act earlier this year and which are specifically aimed at helping businesses run. the economic effects of the pandemic. It’s now heading to the city’s Jobs Development Authority for final approval before it goes to the federal government.
After government review, the plan returns to Grand Forks for final approval and launch of the loan program, according to city documents.
The $ 1.4 million is a comparative drop in the bucket next to federal funds that have already arrived in Grand Forks under previous relief programs. In previous rounds of relief funding under the Paycheck Protection Program, businesses in Grand Forks County have received between $ 110 and $ 234 million, which loan records show has kept approximately 16,500 jobs.
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But every dollar counts, city administrator Todd Feland told the Herald – and this loan program is especially for small businesses who could benefit greatly from smaller loans.
City documents show that the fund’s first loan packages are aimed at businesses with 15 or fewer full-time employees and hotel businesses. The loans themselves should be modest – between $ 5,000 and $ 25,000, for the first disbursements – with an interest rate of 1%. The repayment of these first series of loans would be made over five years.
City documents show potentially higher loan amounts, with longer repayment periods, for subsequent loan cycles.
“A rare (program), federal dollars without conditions,” Council member Bret Weber, a committee member, said on Monday.
Funding is also critically important as the pandemic continues. As students return to class – both public schools and the UND – local business leaders have pointed out that Grand Forks is entering a time of uncertainty. The number of COVID-19 cases has increased in recent weeks, and it’s unclear what they will do next.
The Growth Fund committee also approved an item making Grand Forks’ seed loan program permanent. A package of annual loans of $ 100,000 to local entrepreneurs intended to stimulate local economic growth, the program has a three-year history and has helped start 10 local businesses, according to city documents.
Much like the coronavirus relief loans, the article is expected to appear again before the Jobs Development Authority next month before being approved for good.
