Pawtucket Offers New Round Of Forgiveable Business Loans

PAWTUCKET, RI — Mayor Donald R. Grebien has announced a forgivable loan program through the Pawtucket Business Development Corporation that is geared toward getting much-needed operating funds into the hands of small business owners.

The extended duration of the COVID-19 pandemic continues to have severe impacts on Pawtucket’s small businesses, Grebien said in a release.

“Over the past year PBDC has closely listened to its small business community and has worked to fine-tune its initial COVID-19 Emergency Loan Program for addressing the continuing financial burdens faced by local businesses resulting from continued economic downturn,” Grebien said.

The forgivable loan program provides interim relief to businesses with 25 or fewer employees who can demonstrate a 50 percent loss of revenue caused by the continued coronavirus crisis. Like the corporation’s initial COVID-19 Emergency Loan Program, the new program can be used to pay operating expenses for day-to-day business operations, including but not limited to rent, utilities, insurance, marketing costs and supplies.

PBDC will require business owners to either be low-to-moderate income themselves or to provide documentation showing that at least one low-to-moderate income job would be created or retained, the mayor's office said. The loan amount of $5,000 comes with a 2% interest rate and payments are deferred for the first 12 months. After that period, businesses will have two years to complete full repayment. The loan will be forgiven after the first year if one job is either created or retained.

PBDC has already closed on 32 COVID-19 emergency loans totaling $320,000, since its initial program began in May 2020. Funding is limited for the new round, and applications will be reviewed on a first-come-first-served basis.

Businesses can download the application at http://www.pawtucketri.com/planning-redevelopment. People can either mail the application or drop it off. The mailing address is: Pawtucket Business Development Corporation, City of Pawtucket, 137 Roosevelt Avenue, Pawtucket, RI 02860.