THUNDER BAY – Small businesses struggling to survive the COVID-19 pandemic may have been thrown a financial lifeline.
Thunder Bay Ventures executive director Martin Wyant announced his organization has received more than $1.8 million to be doled out to micro enterprises in the form of Regional Relief and Recovery loan of up to $40,000. To qualify, businesses must not be eligible for other COVID-19 government funding, including the Canada Emergency Business Account.
Everyone has been struggling since shutdowns were put in place and many businesses still need help to survive.
These loans, up to 25 per cent of which can be forgiven, should ensure many more businesses don’t fall through the cracks.
“Many of these folks are known as sole proprietors. They’re not incorporated. They haven’t been eligible for some of the other government funding. They’re one- and two- and three-people operations, businesses that are regularly always challenged, but in these times, when they can’t generate any revenue at all, this is a lifeline,” Wyant said on Friday.
Ontario is still in Phase 1 of its reopening strategy, allowing many businesses to welcome back customers. But many are still closed.
Wyant said they’ve already got a dozen loans ready and approved to go out the door, and now that the money is in the bank, it should get to those who need it relatively quickly.
The loans feature zero per cent interest rates until January 2023 and if 75 per cent of the loan is paid off by the end of 2022, the remaining 25 per cent will be forgiven. At that point, any outstanding loan balances will be converted to a term loan, offered at prime rate.
The full balance of each loan must be paid off by Dec. 31, 2025.
To qualify, businesses must confirm they were rejected for other government-related COVID-19 funding, demonstrate they were established and viable prior to March 1, 2020 and show how their business has been adversely affected by the pandemic.
“It’s not a gift. It’s really intended to try to give people a lifeline to manage their bills and emerge from this now and in the next few months, still standing as a business.”
The money is offered in partnership with FedNor.
Online applications are available at www.thunderbayventures.com, or contact Joe Talarico at 768-6650 or by email at joe@thunderbayventures.com.
