Nashua OKs $1.2 Million Coronavirus Fund For Small Businesses

NASHUA, NH — Small businesses in New Hampshire continue to struggle to hold on during the now-extended statewide stay-at-home order, but in Nashua, a new $1.2 million fund is slated to provide a much-needed backstop. On Tuesday, the Nashua Board of Aldermen approved the creation of a Coronavirus Impact Fund to provide grants and loans to small businesses and nonprofits on the brink.

Mayor Jim Donchess, who proposed the initiative earlier this month, said in a statement that the money is intended "to help our small businesses and nonprofit put people back to work when New Hampshire begins to restart the state’s economy."

There are limits on what the money may be used for. According to a news release from mayor's office, the funds cannot be spent on capital improvements — generally speaking, this category would include things like upgrading equipment or expanding to a new location — and instead the money "must help contribute to the business or nonprofit’s ability to remain open, retain employees, and/or and/or provide critical services during the COVID-19 pandemic."

In an interview, Nashua Economic Development Director Tim Cummings stressed that the fund is reserved for businesses and nonprofits that have experienced "hardship, a loss of some sort, or additional expense" related to the coronavirus outbreak.

The fund's approval arrives at a time when more help is on the way for small businesses. With surging unemployment and deepening complications in multiple industries, Congress last week approved a multi-billion dollar boost to its Paycheck Projection Program and the SBA emergency loan program. However, Cummings claimed that many businesses owners, particularly those who lack relationships with banks or who recently opened new businesses, have not been able to take advantage of the help.

"There's a gap in the marketplace," Cummings said.

It's a gap the new Coronavirus Impact Fund seeks to fill. The city anticipates to award grants at an average of $25,000 to businesses that qualify; other businesses may be eligible for a loan.

Cummings said he anticipates the application process to begin at some point next week.