Mt. Holly council adopts amendments to Small Business Emergency Loan Program
The Small Business Emergency Loan Program, formerly known as the Emergency Management Act Small Business Loan Program, was approved by Mt. Holly city council last month and provides small businesses with lease or mortgage payments for up to three months, through a low interest loan, with a $5,000 per month maximum. The program’s objective was to provide short-term economic stability and to protect the investments made by these businesses for the long-term economic good of the city. The program was established on an emergency basis with an accelerated timeline in order for borrowers facing loss of revenue due to the COVID-19 pandemic and governmental states of emergency to receive these loan funds quickly to pay rental and mortgage payments starting in April.
On April 17, 2020, the council held a public hearing and subsequently unanimously adopted the new “City of Mount Holly Small Business Emergency Loan Program”. The new program incorporated a few changes to the previous Emergency Management Act Program, including the following: reducing the interest rate to 3% from 6.75%, redefining requirements pertaining to businesses in commercial and residential zones, and reiterating that only “for-profit” businesses are eligible.
Clarification was added that home occupations are not eligible, since there are other programs available to assist homeowners with their mortgage payments. This loan program is targeted in scope to address a lending gap to small businesses that is not being covered by banks and other governmental programs.
Additionally, any previous loans approved through the Emergency Management Act Small Business Loan Program at 6.75% will be converted to the new Small Business Emergency Loan Program at 3% interest.
For full details on the amendments to the Small Business Act Loan Program and information on how to apply, please visit www.mtholly.us, or pick up an application in the Mount Holly Police Department lobby, located at 400 East Central Avenue, Mount Holly.