Small business owners may be eligible for Richardson’s new forgivable loans. (Courtesy of Pexels)
Richardson is preparing to launch a small business assistance program in the Collin County part of town.
Forgivable loans of up to $ 50,000 will be available for businesses with no more than 100 employees, Deputy City Manager Don Magner told city council at a July 20 meeting. The principal of the loan will be forfeited if business owners can prove that they have been open for four months with at least 90% of their employee count and payroll as of March 1.
Staff propose that the city pay for the initiative by setting aside $ 1 million in federal coronavirus relief aid and Economic Security Act money it received through Collin County , said Magner.
Business owners in the Dallas County part of the city can apply for similar loans through the county business assistance program. Richardson plans to mirror the guidelines used by Dallas County on its own initiative, Magner said.
A pre-qualification period begins on August 1. Disbursements, which will be made through a lottery system, are expected to be completed by the end of September. A third-party organization known as the National Development Council will oversee the screening and selection process, Magner said.
More information will be available on the city’s website and on social media once details are finalized, Magner said.