The Program will offer micro loans from $2,500 up to $20,000 (and up to $50,000 on exception) to companies who cannot access additional funding through the BDC or their Traditional Bank and need immediate cash injection to cover expenses over the next 3 months.
This is a direct response to the radical drop or total loss in sales that the business community is witnessing due to the COVID-19 worldwide health pandemic.
Loans will be at 0% interest for the first 6 months and then a rate of 2.95% will be charged over the remaining term of the loan. Terms range from 3-5 years. No principal payments will be required to be paid for the first 6 months. Loans will be secured by a personal guarantee of the owners. Loans are open and can be paid back at anytime without penalty.
The CFDC recognizes that while we are all doing our part to protect our healthcare system, our essential service workers and our most vulnerable community members, it is achieved thanks to great sacrifice by many including our small business owners.
“I hope that this Emergency Loan Program is just the start, we are pushing for more measures. We need significantly more cash in the hands of business owners so they can avoid long term layoffs, pay their rent, their mortgages, their bills and put food on their families table without going into an unmanageable amount of debt to do so. We hear you and we are fighting for you.”- Lesley Thompson, Executive Director
The Program is active and currently accepting applications until the $500,000 is fully subscribed. To be considered for the program, email CFDC Executive Director, Lesley Thompson at firstname.lastname@example.org with a summary request of your current financial situation and a budget of what will be required to carry your business over the next 3 months. A member of the loans team will then contact you with the full list of documents required.
In addition to these measures, Cornwall & The Counties CFDC has forgiven interest for all clients for a three-month period and have pre-qualified a 6-month postponement of principal for all clients managing effects of COVID-19. Due to the limited funds available, if we believe you may qualify for BDC financing, you may be requested to first attempt to do so. The local BDC contact is Rose D’Amato who can be reached at email@example.com.