At its meeting Tuesday night, the Greenville City Council approved a loan program to assist small businesses during the COVID-19 pandemic.
The no-interest loans would be available to businesses that were not successful in obtaining grants through the federal COVID-19 assistance programs.
City Manager Dave Willey explained the new program, which will go into effect once the details have been completed by city administrators. He said this program would allow the city to make loans of up to $5,000. They money would come from the city’s revolving loan fund. Loans would be for two years. The city would not seek collateral like traditional loans.
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Willey said the loans would be binding and if default occurred, the city would seek court action. The loans will be paid back monthly and no payment is due until the business reopens or six months after the loan is obtained.
The city manager credited Bill Walker, Greenville’s economic development coordinator, with doing the work and research for the program.
The money for the loans will come from the city’s revolving loan fund, which currently has approximately $75,000.
During the discussion, Mayor Alan Gaffner asked the councilmen if they wanted to wait to proceed with the program. Walker told them he believed it was a case of the sooner the better.
The council unanimously approved a motion to provide the loan program.