Oswego Launches Coronavirus Small Business Loan Program

OSWEGO, IL — The Village of Oswego has launched several different loan programs for local small businesses amid the coronavirus crisis. While not as robust as the relief packages currently being offered at the state or federal level, village officials said they hoped the programs would help businesses that might need a hand.

"Throughout the last three weeks I've organized outreach to at least two hundred businesses, almost certainly more," Oswego Economic Development Director Corinna Cole said at Tuesday's Committee of the Whole meeting.

There are three main programs that the village is offering for the sake of small businesses affected by the coronavirus crisis. These are:

• A marketing grant to the Downtown Association
  • This grant is meant to help keep 'brand awareness' high for businesses in the downtown area.
  • $3,000 is available during the crisis, plus an additional $3,000 will be earmarked for promoting awareness after it has passed. This grant is meant for the entirety of the downtown businesses, not just Association members.
• Rent assistance loan
  • Eligible businesses may either apply for a loan worth 50 percent of their monthly lease value for two months up to $5,000, or 50 percent of one month's lease value up to $2,500 (whichever is less).
  • Small businesses that had to close or substantially reduce daily operations due to the coronavirus crisis are eligible.
  • Eligible businesses must be in good standing with the village, be able to demonstrate that they had reduced hours of operation, and have an existing lease with at least six months remaining. An applicant business' landlord must give the village written assurance that the tenant is in good standing.
  • Repayment will be spread over a 12 month period or the remaining lease term, whichever is less. Applicants must have at least 6 months remaining on their lease. Collateral on the loan will be waived. The loan may be applied retroactively to the start of the stay-at-home order in March.
  • Eligible businesses must be able to demonstrate that they can make repayments, and that they have firm plans to reopen.
  • A total of $50,000 is available in this loan fund
• Restart loan program
  • Up to $5,000 is available in 'ramp-up' costs for businesses that had to close or substantially reduce their hours of operation during the stay-home order.
  • Eligible costs for the loan include working capital expenditures, such as the purchase of additional inventory, early payroll costs, some marketing expenditures, etc.
  • Eligible businesses can not have had more than 10 full time employees prior to the crisis, and must have been in operation for two years prior to their application. Applicant businesses must be in good standing with the Village.
  • This loan may not be used for capital costs. All costs must be documented by the applicant business. This loan is non-retroactive to costs before or during the stay-at-home order period.
  • The term of the loan runs 12 months after it is granted, at a two percent proposed interest rate. Collateral for the loan will be waived.
  • A total of $50,000 is available in this loan fund

Unlike relief loans currently being offered through the national Small Business Association, the loan programs the village is offering are part of Oswego's normal budget. As such, they are more limited than what either national group can offer.

"Every year in the budget we have money set aside for economic development," Oswego Community Engagement Coordinator Jenette Sturges said. "These are funds that were allocated for small business."

Still, village officials urge businesses that may need a boost to make use of them. Cole said that she and her team are willing to help businesses through any concerns they may have about these programs, or to direct them to state or federal programs should the village's loans prove insufficient.

"We are definitely trying to help everybody that we can," Cole said.

To learn what local loans your business may be eligible for, or what federal and state loan programs are available, Cole said she could be reached via email.

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