Small businesses in Columbus, which received low-interest loans as part of a city-funded program designed to help companies stay afloat during the pandemic, began repaying the loans.
The program, dubbed Columbus INvigorate, loaned about $ 874,000 to 48 small businesses within the city of Columbus last year. The three-year loans ranged from $ 5,000 to $ 25,000 with a six-month delay in interest payments. The interest rate after a six-month grace period is 1%.
As of Friday, the recipients of the loan had collectively paid $ 176,810, said Eric Frey, executive director of the Administrative Resources Association, the nonprofit government association that runs the program. This represents about 20% of what was borrowed.
In addition, four companies – Lockett’s, Yo Mama Frozen Yogurt and More, Dell Brothers and Columbus Rock Gym – have fully paid back their loans totaling $ 90,000. Lockett’s and Yo Mama subsequently ceased operations.
Frey said Administrative Resources transfers loan payments to the city on a quarterly basis and has so far returned about $ 116,000 to the city’s coffers. None of the 48 recipients defaulted on their loans.
For more information on this story, see Sunday’s Republic.