LEXINGTON, Kentucky (WTVQ) – Lexington is accelerating the next round of small business loans to help small and minority businesses still grappling with the pandemic.
On Tuesday, the city council approved a second round of funding of $ 2.5 million.
Small and minority-owned businesses can apply for loans up to $ 25,000, possibly as early as next week. The second round follows the first round, approved in the spring, with applications starting May 18. The program was closed in mid-June when funds ran out.
When the county council approved the loans in the spring, they said they expected a second round of cash from the city’s budget stabilization fund if there was demand (Small Business Loan Statement June 29, 2021).
Companies receiving grants must meet certain standards, in which case they do not need to return them. If they fail, they must pay back part of the funds.
In summer and autumn, the city had a similar program.
In June, the program provided loans to 155 enterprises totaling $ 2,243,843, an average of $ 14,476.41 each. According to the program’s guidelines, at least 50 percent of the money was to go to women and minority-owned businesses. The remaining funding went to Commerce Lexington to process, process, and review applications.
The city received a total of 293 requests, totaling $ 7,137,879. Of these, 100 were withdrawn due to a number of shortcomings. And after the initial application period closed, a number of other businesses turned to the question of possible funding.
According to a report presented to the City Council’s Budget Committee on Tuesday, 57 percent came in, of which 44 were businesses owned by minorities and 60 were businesses owned by women.
Council members say they don’t want to lose momentum.
CG: Richard Moloney / City Councilor (10 seconds)
“I agree that we should continue and do this. They have a list. I want to get money and we have to do it now, ”said At-Large Councilor Richard Moloney.