Bath City Council on April 15 approved funding for an Economic Relief Bridge Loan Program in response to the immediate needs of small businesses affected by the coronavirus pandemic.
The one-time loans will offer up to $7,500 for small businesses in Bath, and will be awarded on a first-come, first-served basis with program funding up to $300,000, as of April 15, 2020.
The program is being funded through the Bath Iron Works Tax Increment Finance District. TIFs are a common financing tool municipalities use to pay for public projects. It essentially funnels any increased tax revenue in a defined district — such as a stretch of downtown or at a new business park — toward specific purposes, which can range from infrastructure upgrades to paying down debts, without increasing property taxes across the board.
“As a result of the operational restrictions placed on our local businesses due to the recent pandemic, we feel that the City has a responsibility to help stabilize our local economy by supporting small businesses in meeting their immediate needs,” said City Manager Peter Owen in a news release Friday.
The terms of the loan are two years, zero-interest, with deferred payments for the first 12 months. The loans may be forgiven as long as the loan proceeds are used to cover payroll, mortgage interest, rent, and utility costs; and employee and compensation levels are maintained or are returned to levels (as of Feb. 29, 2020), on or before April 15, 2021.
Applications and guidelines for the Economic Relief Bridge Loan Program may be obtained from the city of Bath website beginning Monday, April 20. Applications will be reviewed and approved for funding by the city’s Economic Development staff. Visit cityofbath.com/COVID-19EconomicRelief for more information.
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