Richmond EDA to Offer Interest-Free Loans to Small Businesses Affected by Crisis
Applications open April 6. In addition, the city no longer has to put funds into the Redskins training camp contract.
April 2, 2020
The Richmond Economic Development Authority announced Thursday that it will begin offering interest-free loans of up to $ 20,000 to small businesses affected by the COVID-19 crisis.
The Richmond EDA has released $ 1 million for the relief fund, according to the city’s economic development director Leonard Sledge.
Businesses based within city limits with fewer than 25 full-time employees can claim six months of current employee pay or $ 20,000, whichever is less, according to the office of Richmond Mayor Levar Stoney. Loan payments will be disbursed over six months and payments will be deferred for six months, followed by 48 months of interest-free payments. Businesses can apply for the loans from Monday April 6 at richmondgov.com/covid19. Applications will be considered in the order in which they are submitted.
“Small businesses have made Richmond the thriving cultural capital that we love,” Stoney said in a statement. “They have been understanding, patient and selfless in accommodating recent social distancing guidelines, regardless of the economic consequences for them. This loan program is one way to help bring some relief and support during this difficult time. “
In the weeks following the news of the first case of the coronavirus in Virginia on March 7, hundreds of restaurants in Richmond have voluntarily closed their dining rooms to stop the spread of the virus. Some have switched to delivery and take out only, but this business model was not viable for some, who have now closed their doors indefinitely.
Salons, hair salons, spas and many retail businesses have also closed, especially since Governor Ralph Northam imposed restrictions on more than 10 people occupying an enclosed space and then issued a stay order in home this week.
Additionally, the mayor’s office has announced that the city will not have to pay the Washington Redskins $ 661,767 for the 2019 and 2020 seasons at Redskins training camp, as part of an adjustment to the deal. city’s eight-year-old with the NFL team, which will hold its training. in Richmond from late July to early August at the start of the preseason.
This is the last year of the pact signed in 2013, in which the Richmond EDA agreed to pay for the $ 10 million training center – which is operated year round by Bon Secours Mercy Health for primary care, sports medicine and physiotherapy – and $ 500,000 each year to the team. The EDA owed $ 161,767.85 for 2019, according to the city’s press release.
The team can extend the deal beyond the eight-year contract, but that doesn’t require the city’s EDA to provide a cash contribution.