HAMPTON, Va. — COVID-19 is impacting just about everything, and small business owners are taking a huge hit.
Hampton's Economic Development Authority voted Tuesday to implement the Business Disaster Relief Loan Program. It's a forgivable loan program to assist small businesses in Hampton that are struggling because of coronavirus.
Hampton city council authorized the redirection and use for this disaster relief up to $500,000 of funds previously appropriated to the EDA for the purpose of awarding discretionary economic development grants (the original intent of which was to stimulate economic activity by providing to companies and/or other organizations where the primary outcome is job growth or capital investment).
Small businesses can apply for a loan of up to $10,000 with reasonable repayment terms.
It's a forgivable loan if the awardee is current on all taxes and fees owed to the City on and due through August 1, 2020.
Any portion of a loan used to pay any delinquent taxes owed by a business shall not be forgiven and must be repaid with interest to the EDA by the business over a 12-month period and taxpayers granted an extension of the due date for the City’s real and/or personal property taxes due on June 5, 2020, shall not be eligible for relief through the EDA.
There are several ways to qualify. Small business owners must show a financial loss directly related to COVID-19 and have average annual gross receipts of $1,000,000 or less.
Owners also must prove federal help isn't enough to sustain their business.
