Montgomery County CDBG Working Capital Loan
20 Mar 2020
Businesses across the state of Kansas are feeling unprecedented pressures from the economic and health impacts of COVID-19. This situation calls for a strong and creative response from all of us.
Today, the Department of Commerce is encouraging MCAC and Montgomery County to use CDBG Revolving Loan Fund monies to assist small businesses with their need for working capital and to continue to employ their workers.
The Kansas Department of Commerce CDBG Program is allowing IMMEDIATE use of Montgomery County's CDBG revolving fund monies to support the working capital needs of businesses in your community. Here are the terms:
- Loans must be used for working capital. Working capital is defined as salaries and wages, purchase of inventory, utilities, rent, insurance payments, etc.;
- The term of the loan shall be 3 years or less – the term is determined by Montgomery County Commissioners and/or MCAC;
- The interest rate will likely be 1%;
- Money loaned, when re-paid, will be returned to your accounts;
- Complete the Job Certification Form to prove 51% of the persons impacted are LMI at retention;
- Collateral is not required
- Maximum Loan is likely $7,500, but funds are limited, and will be available on a first come first served basis;
- The application for this new program is below.
- Job retentions will need a letter from the company/business attesting the company is either shut down or will be shut down due to COVID 19;
- Public Notice of Fund Availability has been reduced to 24 hours. We will allow posting at the Montgomery County Courthouse, City Halls, as well as local radio or tv.
We hope this action by the Kansas Department of Commerce, MCAC and Montgomery County helps your business that may be struggling. We’re grateful for your partnership with you!