Syracuse unveils new loan program for small urban businesses. (Some loans will be canceled)
Syracuse, NY – Small business owners in Syracuse can apply for low-interest loans starting today through a $ 1 million program managed by the city’s economic development arm of Syracuse.
Money can go fast. Applications should be submitted to the Syracuse Economic Development Corp. no later than December 31, said Mayor Ben Walsh. Walsh announces the program at a press conference this morning.
There are three types of loans depending on the size and type of business. Loans to smaller businesses – “micro-businesses” with 10 or fewer employees – are repayable in certain circumstances. Loans can be used for a wide variety of uses including capital upgrades, purchasing supplies and inventory, and more.
Here are three basic categories:
Micro-enterprise funds: Loans of up to $ 5,000 are available at an interest rate of 1%, repayable over two years. Loans can be canceled if the business retains its employees, stays up to date on property taxes, and meets other conditions. To be eligible, a business must have 10 or fewer employees.
Small Business Assistance Fund: These loans of up to $ 25,000 are intended for businesses with 50 or fewer employees that experienced a decline in sales in 2020 or 2021 or that are located in an eligible census tract (see map). The interest rate is 1.5%, repayable over five years.
Community Impact Fund: Businesses, nonprofits, or development entities with 50 or fewer employees can claim up to $ 200,000 for building renovations or other property improvements in a qualified census tract. The interest rate is 2% for 15 years.
Syracuse Economic Development Corp., or SEDCO, is a local development corporation created by the city. To apply for a loan, business owners must go through a two-step process:
First, complete an online questionnaire on the SEDCO website. Then a city representative will contact the company to provide an application form for the appropriate loan fund. Applications and supporting documents must be submitted by noon on December 31st.
The money for the loans comes from the $ 123 million Syracuse received this year in federal stimulus funds.
Between SEDCO and the Syracuse Industrial Development Agency, city officials had previously provided $ 1.3 million in grants and loans to businesses recovering from the Covid-19 pandemic.