On September 8, 2020, Lebanon City will start accepting applications for a second round of the new forgivable loan program created to provide recovery assistance to small businesses struggling under the financial impact of COVID-19. The Lebanon City Small Business Recovery Assistance Fund, developed by the administration of Mayor Sherry Capello, is designed to help small “mom and pop” businesses within the City of Lebanon.
The City of Lebanon business community is in the midst of a severe economic downturn sparked by the unprecedented business shutdown measures taken to combat the spread of COVID-19. Federal resources provided through the CARES Act offer important resources, but due to the overwhelming need, they will likely be insufficient and will not reach the most vulnerable small businesses in the Lebanon community.
“We acknowledge that many small businesses are struggling to stay afloat and understand the economic and emotional toll that an event like this may have on a person, business and community,” states Mayor Capello, “Not all businesses were able to take advantage of the resources made available and in order to better serve our business community, we have established this fund to assist. We are committed to a simple, low-barrier process."
The City of Lebanon's Community & Economic Development Office will be administering the program. They will process submitted applications and commence fund disbursement in mid October.
The Lebanon City Small Business Recovery Assistance Fund encompasses multiple funding levels, all which include forgivable loans:
- Eligible small businesses must be physically located within the city limits of Lebanon, PA and file federal and state taxes.
- Forgivable loans will be eligible for forgiveness pending documented proof that funds were used as agreed and that they re-opened (or remained open) for a minimum of 90 days from receipt of the funding. Businesses will be required to certify that they were open for operations for a period of at least 90 days. The City of Lebanon will review each loan’s forgiveness eligibility by December 31, 2020.
- Forgivable loan amounts will be contingent on underwriting, up to $7,500, according to annual business revenue noted below:
- Businesses with annual revenue less than $250,000 may apply for $2,500.
- Businesses with annual revenue between $250,001 and $500,000 may apply for $5,000.
- Businesses with annual revenue between $500,001 and $1,000,000 may apply for $7,500.
- Businesses with annual revenue over $1 million are not eligible to apply.
- Eligible use of funds (business purposes only) include working capital needs such as payroll, mortgage or rent, utility payments, inventory and COVID-19 expenses. These loans will be considered forgivable when loan recipients meet the criteria defining legitimate business COVID-19 expenses.
- There will be a preference for small businesses that have a storefront, including but not limited to, retail stores, restaurants, personal service shops like hair and nail salons, and other critical businesses like florists, performing arts, and fitness centers. The applications will be selected according to criteria and ranked according to historic profitability, historically disadvantage populations, and lost revenue, just to name a few.
The forgivable loan application window will open on Tuesday, September 8 at 9:00 AM and close on Friday, September 25 at 5:00 PM. This is NOT a first-come, first-served fund. Once the application period closes on September 25, all applications will be considered. The webpage and application are available in both in English and Spanish.
Applicants will need to provide the following documents with their application:
- 2019 Tax Return
- 2019 Financial Statement
- DUNS Number
- Credit Report
- Driver's License or legal form of ID
- W-9 Form
- ACH Form with copy of VOID check
Organization documents/Articles of incorporation/ Fictitious name (if appropriate)
By laws/Operating agreements (if appropriate)
Eligible small business owners can learn more about the forgivable loan program by clicking the button below or by visiting Lebanonpa.org
. Applications will also be available on Tuesday, September 8 at Lebanonpa.org
. For additional information, please contact Janelle Mendoff at 717-228-4487 or firstname.lastname@example.org.