Emerging Business COVID-19 Insights – Mayor Berke Announces Chattanooga COVID-19 Small Business Stabilization Fund
Miller & Martin PLLC Alerts | March 31, 2020
Author: Stephanie Savage
On March 30, 2020, Chattanooga, Tennessee, Mayor Andy Berke announced the COVID-19 Small Business Stabilization Fund (the “Chattanooga Business Fund”). The Chattanooga Business Fund will provide a $2.5 million fund for grant and loan programs to support small businesses facing severe hardship due to the ongoing Coronavirus or COVID-19 pandemic. Such grant and loan programs established by the Chattanooga Business Fund will provide eligible Chattanooga businesses short-term working capital for needs such as short-term rental assistance, payroll for displaced workers, or other business needs.
The Chattanooga City Council and Industrial Development Board will vote to authorize the specific dollars for these grant and loan programs in the next two weeks, though Mayor Berke’s announcement anticipates that the Chattanooga Business Fund will establish three types of programs to support small businesses in Chattanooga:
- COVID-19 Mitigation Grants: Grants under this program will consist of $5,000 grants to help small businesses with needs such as rent and payroll assistance.
- COVID-19 Bridge Loans: Loans under this program will consist of $10,000, $15,000, and $25,000 loans to support businesses with working capital and employee retention. These loans will be for small businesses directly impacted by state and local executive orders which have restricted or suspended their business operations.
- COVID-19 HUD 108 Loans: Loans under this program will consist of loan amounts greater than $25,000. These loans will be for businesses in lower-income areas or for business that retain and hire employees with median income at or below 80%.
Applications for these grant and loan programs under the Chattanooga Business Fund will be available in mid-April. We will continue to follow the status of the Chattanooga Business Fund as it develops and as more information and applications become available. For more information about these programs or other COVID-19 financial relief programs that may benefit your business, please contact Stephanie Savage or a member of Miller & Martin’s Emerging Business practice. For more information about the ongoing developments related to the Coronavirus or COVID-19 pandemic, please visit Miller & Martin’s Coronavirus Resources.