The City of Utica offers an Economic Stimulus Loan Program to assist local businesses that have been impacted by COVID-19 (Coronavirus).
The program will consist of a $500,000 funding pool. The criteria and guidelines of the loan program are as follows;
- Business must be located in the City of Utica.
- Business must have 25 employees or less and funding is tied to the retention of low to moderate-income employees.
- Maximum loan for an individual business is $10,000. All loans will have zero interest.
- Loan can convert to a grant if specific criteria is met, including business owners keeping their staff on payroll (funds are not meant to replace lost sales or profits). The business owner must provide a good faith certification of funding usage and payroll information must be provided as verification.
- No Personal Guarantees will be required (however collateral will be required).
- The City will provide the loan proceeds within 1-2 weeks depending on completeness of application and other loan materials.
- All federal job retention guidelines must be followed throughout the process.
The city is also offering forbearance for existing loans. Currently, sixteen (16) businesses have loans with the city and are eligible to receive a loan forbearance with no principal payments or interest due for three months.
In addition to the Stimulus Program and loan forbearance, the city of Utica will be receiving over $1.5 million in additional Community Development Block Grant (CDBG) funds as a result of the passage of the CARES Act.
The United States Department of Housing and Urban Development (HUD) is currently promulgating the rules by which said funds are to be expended. The city will be making future announcements regarding how these funds will be allocated.
A loan application can be found at www.cityofutica.com. Any questions regarding the city’s program can be directed to Economic Development Specialist Jack Spaeth at (315) 792-0181 or via e-mail, firstname.lastname@example.org.
Mayor Palmieri stated, “It is imperative the city and community step up and do everything possible to support our local businesses during this crisis. I am pleased the city is in the position to offer assistance and we will explore every opportunity to keep Utica businesses viable.”