The Kalamazoo City Commission has approved the Kalamazoo Small Business Loan Fund (KSBLF), a partnership with the United Way of the Battle Creek and Kalamazoo Region (UWBCKR) that would offer near-immediate support for small businesses that have been hurt by the COVID-19 pandemic.
KSBLF will provide urgent relief to small business via low-interest loans of between $5,000 and $50,000, with approval and disbursement expected in a matter of days. Loans could be used to cover operational expenses, payroll, and benefits.
The loan program is funded by a $2 million allocation from the Foundation for Excellence.
“Significant and necessary steps have been taken to prevent the spread of COVID-19,” noted Kalamazoo City Manager Jim Ritsema, “but these steps have created serious hardships for the small businesses that we all rely on. This program is intended to help these businesses stay open and keep people employed until state and federal support has an impact.”
The program is available to all businesses that meet the following criteria:
- Provide support to impacted employees
- are located within the City of Kalamazoo
- Have 50 employees or fewer
- Need working capital for payroll or operational expenses
- Can demonstrate an income loss related to COVID-19
Loans will have the following terms:
- Total term of 36 months
- No payments required for six months, followed by a fully amortizing 30-month term
- Interest rate of 1%
Complete details and the online application are available at https://changethestory.org/kalamazoo-small-business/.
Applications will be reviewed for approval by an advisory board consisting of economic development and community representatives. Review is expected to take place weekly with a goal to wire funds as early as two days after receiving an application. This program is emergency relief and is intended to be temporary, with loans being made until approved grant funds are exhausted or its closure by the partners.
“We know that people are working around the clock at the state and federal level to organize help, but we are thinking about our city, and see these rapidly available funds as critical to bridging businesses and our workforce until State and Federal help materializes,” said Andrew Haan, President of Kalamazoo Downtown Partnership.
The program was designed by the UWBCKR and City of Kalamazoo based on national best practice models and local assistance from the Upjohn Institute for Employment Research, Local Initiatives Support Corporation (LISC), Kalamazoo Downtown Partnership, and the Michigan Small Business Development Center. The strong community partnerships that exist in Kalamazoo made it possible to move this program from inception to execution in less than two weeks. It complements other relief programs that are also available to community members, including the UWBCKR Disaster Relief Fund and the Kalamazoo Community Foundation Urgent Relief Fund.
“This program aims to offer immediate life-lines to small businesses and their workers, especially those in the category of “asset limited, income constrained, employed” (ALICE), and retain workforce capacity in this time before state and federal programs to show impact,” said Chris Sargent, President & CEO of the UWBCKR.
The United Way of the Kalamazoo and Battle Creek Region
United Way of the Battle Creek and Kalamazoo Region envisions a vibrant community where all people realize their full potential. UWBCKR drives impact by leading shared efforts that engage diverse people, ideas and resources. We partner across all sectors year-round to achieve measurable progress towards specific goals in education, income and health—the building blocks for a good quality life. On the web: www.changethestory.org. Also check us out on Facebook, Twitter, Instagram, LinkedIn and YouTube.
The Foundation for Excellence
The Foundation for Excellence was created in 2016 to help address challenges to the prosperity of the City and help make Kalamazoo the most dynamic, fulfilling and equitable place that it can be.
The FFE provides funds to stabilize the City’s budget, lower the property tax rate, and invest in aspirational community projects and programs. FFE funds support programs and projects of City departments, such as Public Services, Community Planning and Economic Development, and Parks and Recreation. Their work is often conducted in partnerships with external organizations whose missions align with the goals of the City.