Birmingham City Council approves $1.2 million for small business emergency loan program

The Council approved an item authorizing the City to enter into an Emergency Loan Fund Administration Agreement with the Birmingham Resource Center for a total of $1.2 million. That money will be used to administer small business loans throughout the city to eligible companies that apply.

Businesses with under 50 employees will be able to apply for loans up to $25,000 — with the average being around $10,000 — in order to prevent staff reductions, offset loses due to COVID-19 and to sponsor sick leave for employees. The loans will have 180-day repayment terms with zero interest.

“Small businesses are the backbone of our city and we’re are committed to doing everything we can to help them stay afloat during this time of economic uncertainty,” President Parker said. “The Council has been working hand in hand with the Mayor and his team to chart the best course of action. We believe this is a major step in the right direction. Together we’re going to make sure Birmingham comes through this stronger than ever.”

Business owners will be required to complete a needs assessment form to provide data regarding their payroll deficiency, sick pay requests/pay and/or substantial revenue loss.

City leaders are currently working to secure matching funds from the private and civic sectors.

Small businesses that are interested in applying for the loan program can find those resources at: https://bhamstrong.com/