Starting Monday, Victoria small business owners will be able to apply for $845,000 in COVID-19 relief loans after the Victoria City Council approved an agreement Tuesday with PeopleFund to create the Business Resiliency Microloan Program.
The City of Victoria will provide a total grant of $500,000 to PeopleFund for the program, with $345,000 to be provided in the form of loan capital that will be available to small businesses. PeopleFund will match Victoria’s overall contribution with $500,000 that will all go toward the loan capital fund for a total loan pool of $845,000.
“Small businesses are the foundation of our community, and we need to do our part to help them stay alive during this unprecedented situation,” Victoria Mayor Rawley McCoy said. “Our Plan 2035 comprehensive plan calls for greater emphasis on job retention, and the partnership with PeopleFund will help us with that effort.”
In order to be eligible for the program, a business must have suffered financial losses due to COVID-19; must have a physical address in the City of Victoria; must be up-to-date on City and County property taxes; and must have good credit with a minimum credit score of 600 as of Jan. 31. Exceptions to these requirements may be considered on a case-by-case basis by PeopleFund, especially if a business’s failure to meet requirements is related to COVID-19.
“PeopleFund is honored to partner with the City of Victoria in supporting small businesses,” PeopleFund CEO Gustavo Lasala said. “We applaud the City’s initiative as every dollar invested in this program has a multiplier effect with a significant positive impact on economic activity.”
Loans will be provided at 0% interest for the first six months; afterward, the interest rate will increase to a maximum of 5%. Interested businesses can apply for loans up to $50,000.
To apply, visit www.peoplefund.org, and click “Get a loan.”