Posted June 05, 2020
The City of Rockland has launched the Rockland Recovery Loan program, which offers deferred-payment loans of up to $5,000 at 0% APR to eligible businesses affected by COVID-19.
Two options are available:
1. Real estate secured loan. The loan is secured by real estate (business or personal), with payment deferred until the property is transferred or sold, at which time it is repaid in full.
2. Installment loan. The loan is offered with a 5-year term, and monthly payments begin 1 year from the loan origination date.
Up to $200,000 is available for the program. Up to $100,000 in loans is available to eligible businesses within the Downtown-Waterfront Tax Increment Financing (TIF) District, through funding from that District. An additional $100,000 is available to assist businesses elsewhere in the City. A map of the District is attached.
The Program will be available during the State of Emergency and up to 30 days thereafter, or until the funding runs out.
A business is eligible to apply if it meets all of the following criteria:
- Physical address in a Rockland building
- Independently owned and operated
- Required to pay Personal Property Tax to the City, and up -to-date on payments
- 10 or fewer current employees (full-time equivalents)
- Documented loss in revenue of at least 50% (three month average prior to date of application, year over year)1 that is not covered by other federal, state or local assistance
Use of Funds
Eligible uses of funds:
- Replacing revenue lost due to COVID-19 to cover up to 3 months of business operating expenses such as rent, mortgage, utilities, or necessary supplies or repairs, but excluding payroll
Ineligible uses of funds:
- Payroll or profits
- Unnecessary expenses
- Expenses unrelated to weathering the revenue loss caused by COVID-19 and remaining operational or reopening for a 3-month period
- Replacement/refinancing of other federal, state or private debt
Recipients must maintain documentation of how funds were used until final payment is made and provide it on request.
- A complete Application with signature(s), and documentation demonstrating eligibility and need
- For the real estate secured option – collateral in the form of real estate
- For the unsecured option – business owner(s) credit score(s) of at least 700
- Sufficient resources, with assistance from this loan, to stay in business for at least 3 months
There are no prepayment penalties.
The Loan Committee for reviewing applications will consist of the City Manager, Community Development Director, and Finance Director.
Applications should be submitted by email to the attention of the Community Development Director, at firstname.lastname@example.org. Reviews will be first come first served. Applications received by June 15 will be reviewed by month end. Applications received by June 30 will be reviewed by July 15.
Community Development Director
City of Rockland email@example.com