Tacoma offers $15,000 stability loans for businesses impacted by COVID-19 outbreak
The city of Tacoma is offering small businesses up to $15,000 to help offset the negative economic impacts of COVID-19.
The COVID-19 Stabilization Loan Program helps brick-and-mortar businesses within Tacoma city limits that have 10 or fewer employees, the city announced in a press release Friday.
To qualify, businesses must show they’ve been operating in Tacoma for at least one year and document a significant loss in revenue or sales due to COVID-19.
There is no cost to submit an application. Applications are available at MakeItTacoma.com.
“We know that small businesses are the lifeblood of our local economy and an essential part of the character of our city, and we are here to help,” said Tacoma Mayor Victoria Woodards in a press release. “... While the full economic impacts of the pandemic are difficult to measure at this stage, we want to do what we can to help our small businesses remain viable amidst the restrictions that have become necessary to stem the spread of COVID-19 in Tacoma and across Washington state.”
The loans are to be paid over a five-year period at a fixed interest rate of 75 percent of prime rate with no pre-payment penalties. Loan payments will be deferred for 12 months after loan closing. For example, if a small business is approved for a loan and that loan closes in April 2020, the business will not have to make any monthly payments until April 2021, according to the city.
The city is dedicating $1 million to the program with funds from its Urban Development Action Grant and U.S. Economic Development Administration Revolving Loan Fund.
The program can help 66 businesses at $15,000 each, but that number could vary.
“That number could go up because we’re seeing some businesses request only $10,000 or less than that,” said Will Suarez, business program coordinator for the city.
So far, dozens of businesses have already applied for financial assistance, according to Suarez.
The city also is deferring quarterly business and occupation (B&O) taxes for qualified small businesses, or businesses that pay $10,000 or less in B&O taxes annually. Those payments will be due Jan. 31, 2021 for businesses that qualify.
For businesses outside of Tacoma, Pierce County is also offering small business loans up to $10,000.
This story was originally published March 27, 2020 at 2:30 PM.
