WARREN — Trumbull County small businesses that meet certain requirements can apply for a low-interest loan from the county’s new $1 million revolving loan fund.
“The funds will revolve in perpetuity for years to come, so these small businesses that get a loan this year will pay back the money, then another business five years down the road can borrow money,” said Teresa Miller, executive director of Valley Economic Development Partners, which is administering the loan.
Trumbull County commissioners in March allocated $2 million for a second round of CARES 4 Trumbull Small Business Relief Fund, a grant program for local businesses adversely affected by the COVID-19 pandemic; as well as the $1 million for the revolving loan fund.
The $2 million in small business grants was fully disbursed as of last month, Miller said. There was a holdup, however, with the revolving loan fund as policies and procedures were being set in place.
Commissioners Frank Fuda, Mauro Cantalamessa and Niki Frenchko unanimously approved a new resolution finalizing the revolving loan program.
Loans up to $250,000 with an average interest rate of 4 percent will be available to small businesses in the county that can show they were adversely affected by the COVID-19 pandemic, Miller said. A small business, per the Small Business Administration’s definition, is any company with annual sales of $1 million or less, she said.
The loan will be open to most small profit and not-for profit groups and also can help fund startups.
Miller said the COVID-19-related requirement will drop from the revolving loan after the $1 million is distributed.
As the principal is repaid, that money and half of the interest will go back into the pot for more businesses to borrow. The other half of the interest goes to Valley Partners as an administrative fee, Miller said.
Small businesses can apply for the loan on Valley Partners’s website.