The Office of Economic Development & Tourism of the City of Lynchburg has been working behind the scenes to formulate a plan to secure ways to help our local small businesses. As a first step in that plan, we announce that the EDA Business Recovery Loan Program is available for small businesses that have not received assistance from the federal government. It is our hope that this loan will help our community’s local businesses get back on their feet and keep pushing forward until the economy can fully reopen.
Who This Loan Is For
On April 30, the Economic Development Authority of the City of Lynchburg voted to allocate a portion of the Revolving Loan Fund to assist with COVID-19 economic relief. Small businesses have been hit hard by this crisis, particularly personal care centers, entertainment hubs and local restaurants and shops. Many of these businesses have closed out of necessity or have adapted to online, pickup or delivery services. According to Mark Strosnider, Chair of the Economic Development Authority, “The Economic Development Authority (EDA) approved the Business Recovery Loan program to support Lynchburg businesses in their recovery efforts, to recharge the City’s economy and to elevate the economic development profile of the City.”
Loans can range from $5,000 to $25,000 depending on need and can be used for employee payroll, rent payments, accounts payable and utility bills. While they will not be forgivable, application and origination fees will be waived, and provision has been made for deferred payments and interest to allow businesses time to recover. Interest rates will also be fixed based on current prime rate at closing, minus one percent.
To receive this loan, a business must be independently owned and have no more than 25 employees. Average net profit for the last two years must be less than $2 million, with net worth/assets not exceeding $6 million. The eligible business must be located in the City of Lynchburg and must have been in operation in 2018. Businesses that have already received federal funding from the Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL) are ineligible. Application acceptance with all necessary documentation began Thursday, May 14, 2020. More information and the application for the loan can be found on our Business Recovery Loan page.
We’re Here To Help
The Lynchburg economy and the small businesses that are a part of it have been incredibly resilient during this difficult time, and we want to continue to support their efforts. As the City moves closer to reopening, our office is here to help the local business community recharge and get back to serving their customers and the community. It is due in part to the dedication and hard work of small businesses that Lynchburg is the best small city in the country. We look forward to continuing to support you in whatever way we can, and we hope that this loan program will help keep you afloat during this challenging time.