THUNDER BAY — Thunder Bay Ventures is stepping up to help smaller businesses struggling with the impact of COVID-19.
The Community Futures Development Corporation for the Thunder Bay area is offering emergency loans of up to $20,000.
With terms up to two years, loans will be interest-free, and no payments will be required until October 2020.
After that, interest will be charged at the prime rate.
Martin Wyant, the executive director of Thunder Bay Ventures, says the overwhelming majority of businesses in the community are micro-businesses with annual revenue less than $500,000 and fewer than nine employees.
Many of these have either shut down or severely curtailed their operations.
Some, Wyant said, are learning they don't qualify for already-announced government assistance programs related to COVID-19.
Others are unsure what they might get in the future.
"They're finding out that they're not necessarily eligible for a lot of what's being offered because they're smaller businesses....at least not yet...and they're struggling to get answers," Wyant said
He said a lot of businesses are doing their best to transition to online service but they face obstacles.
"Landlords have not necessarily been cutting people slack, so we're hoping this can provide some relief, at least for the next few months."
Thunder Bay Ventures is supported by FedNor.
It required special permission from the federal government to charge such a low interest rate.
"We've never been allowed to go this low before. We're typically not allowed to go below prime plus two [per cent]," Wyant said.
Loan applications may be made online at http://www.thunderbayventures.com
Wyant said loans will be processed expeditiously, as Thunder Bay Ventures will require less information and security than normal.
"We will be asking applicants to describe the challenges they are facing as a result of COVID-19, and how the funds will be used," he said.
Thunder Bay Ventures operates with an investment fund currently valued at about $2 million.
