SYRACUSE, N.Y. — Nearly 30 Syracuse small businesses will receive zero-interest loans from the Syracuse Economic Development Corporation (SEDCO) COVID-19 emergency relief program.
A special loan review committee considered more than 60 applications since the program opened on March 23, the office of Syracuse Mayor Ben Walsh said.
SEDCO created a $500,000 fund to provide 0 percent interest, 180-day emergency loans to small businesses in the city that have fewer than 50 employees. The emergency relief program will offer up to $25,000 in loans to small-business applicants in order to address the financial fallout from the coronavirus crisis. SEDCO anticipates the average loan size will be about $10,000.
“SEDCO has already issued checks to the first-round recipients, and more are going out now. I am very grateful that the Emergency Relief program is providing assistance so quickly to small businesses in our community and I want to thank the SEDCO board and staff for their swift action,” Walsh said. “The strong demand for funds is clear evidence of the significant need that still exists in our small business community. For applicants who didn’t receive funding, SEDCO and the Department of Neighborhood and Business Development will continue to provide guidance and direction to other sources of assistance.”
SEDCO approved 11 loans in the first round, Walsh’s office tells CNYBJ. The most recent loans provide short-term financing to businesses operating in 16 different neighborhoods across the city.
The borrowers include Café Kubal, a café with seven locations specializing in locally roasted coffee and light fare.
“Our locations rely heavily on foot traffic of people taking breaks from their workday. That business has been obliterated,” Matt Goddard, owner and president of Café Kubal, said in a statement. “The emergency relief program is helping Café Kubal adjust to the way that the economy has suddenly changed. It will also help us deal with the permanent effect of how consumer behaviors are going to change. We are investing in a mobile app-based delivery infrastructure to be more on-demand in neighborhoods where people are.”
The industries of the loan recipients range from food service, transportation and manufacturing, to retail, automotive, and personal services. Of the 29 recipients, 20 approved borrowers qualify as essential businesses based on the New York State definition, three identified as minority/immigrant/refugee-owned businesses, and two are actively serving first responders with products or services.
For those businesses located in the city of Syracuse still seeking financial assistance, SEDCO is accepting applications that will be reviewed through its “traditional lending process with its limited remaining available funds.”
The program loan committee — made up of board members and City of Syracuse staff — evaluated applications in three rounds to “expedite” the approval process. The loan requests totaled more than $1.1 million, more than twice the amount of funding available. The majority of successful loan recipients sought assistance in adapting their business models to function during the pandemic.