Mass. offers $10M in loans to small businesses hurt by coronavirus
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Gov. Charlie Baker
The Gov. Charlie Baker Administration announced Monday afternoon a $10-million fund has been created for small businesses reeling from the impact of the effort to stem the spread of the coronavirus.
[Update: This fund has been closed.]
Businesses with less than 50 full-time and part-time employees can apply for loans up to $75,000 through the quasi-public organization Massachusetts Growth Capital Corp.
The loans are offered with no payments due for the first six months, followed by 30 months of principal-and-interest payments with no prepayment penalties.
Both for-profit and nonprofit businesses are eligible to apply, and applicants must verify the negative impact from the coronavirus.
[Related: Worcester declares state of emergency as county coronavirus cases hit six]
In an effort to prevent the spread of the disease, Baker has instituted a number of measures designed to keep people from interacting with each other, including banning all gatherings of more than 25 people and closing the dining rooms of all restaurants, although they can still offer takeout and delivery.
As these social distancing measures were ramping up at the end of last week, retailers around Greater Worcester were reporting significantly less foot traffic and revenue. Over the weekend and on Monday, restaurants and outdoor venues announced temporary closures.
“As our administration continues to take steps to protect the health and safety of residents, we recognize the hardships facing the small businesses that create the foundation of the state’s economy,” Baker said in a press release. “This recovery loan fund is a new resource to help small businesses address emergency needs due to the disruption caused by the ongoing COVID-19 pandemic.”
[Related: North County chamber offering emergency $20K loans over coronavirus]
Massachusetts now has 197 presumed or confirmed cases of coronavirus, including six in Worcester County, according to the Massachusetts Department of Public Health. In the U.S., the total number of cases is 3,487, with 68 deaths, according to the U.S. Centers for Disease Control and Prevention. Globally, there are 153,517 cases with 5,735 deaths, according to the World Health Organization.
To apply for a loan of up to $75,000, Massachusetts businesses can complete the application found on MGCC’s website, EmpoweringSmallBusiness.org. Completed applications can be sent to mgcc@massgcc.com with the subject “2020 Small Business Recovery Loan Fund”.
MGCC staff can be reached by same email address.
Since 2010, MGCC has served more than 7,400 small businesses with customized working capital financing commitments totaling more than $122 million.
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