Purpose
To assist New Kent County businesses that are physically located in the County by providing aid to address financial issues that are a direct result from the current COVID-19 pandemic and the state government ordered shutdown of non-essential businesses and modifications to all other businesses. The New Kent County Economic Development Authority will create the “COVID-19 Pandemic Loan Fund for Businesses” in the amount of $50,000.
Loans
From this fund, loans may be made to licensed businesses physically located in New Kent County to the maximum amount of $5,000 per business. Loans have a maximum repayment length of twenty-four months and shall be interest free for the life of the loan. The recipient of any loan can opt for a deferral period of up to six months, in which case the full amount of the loan shall be paid back over eighteen months, beginning at the end of the deferral period. This loan program will be in operation and accepting applications for the months of June and July of 2020.
Conditions
Loans shall only be made to New Kent County businesses who are current on all fees, including but not limited to, real estate taxes, personal property taxes, meals tax, and all businesses shall have a valid Business License, Certificate of Zoning and shall be in compliance with the reporting of business property with the Commissioner of the Revenue.
Authorized Uses
Loans may be used for working capital if it can be demonstrated by the applicant that the loss of revenues resulting from the COVID-19 pandemic has placed timely payment of payrolls or other essential business obligations in jeopardy, such as rent payments, utilities or inventory.
Loan Guarantee
The loans will not require any type of collateral, the submission of previous tax statements, the submission of a profit/loss statement, nor the submission of bank statements. However, a promissory note will need to be signed by the loan recipient as part of the loan approval process.
Application
The business shall complete a “letter” application addressed to the EDA COVID-19 Loan Program, 7324 Vineyards Parkway, New Kent, Virginia 23124. The letter shall contain the following:
- Full name and address of the business
- Name(s) of business owner and/or manager
- Nature of business
- Estimate of lost revenues since the inception of the state ordered shutdown or modification of daily operations for specific business types
- Amount of the loan request and uses to which it will be applied
- Any other pertinent information the applicant thinks would be helpful in justifying the loan request approval
- Any proprietary information shall be noted in letter
- The letter shall be signed by the individual who will be responsible for repaying the loan
- It should be noted that all information submitted as part of the COVID-19 Loan Program will remain confidential
Loan Approval Process
The loan application will be reviewed by the New Kent County Economic Development Authority’s COVID-19 Loan Fund Committee using the aforementioned guidelines as well as other guidelines which in their determination are necessary to implement this Loan Program. When using existing incentive guidelines, the return on investment requirement will not apply, however, the applicant will need to demonstrate the loan can be repaid in the agreed upon period. The COVID-19 Loan Committee of the New Kent County Economic Development Authority will have final determination on each loan application. Since timely action is in the interest of the business, every effort will be made to have loan action taken within a two-week period of receiving the application via teleconference or within an area to ensure proper social distancing requirements. A repayment agreement between the business and the New Kent County Economic Development Authority will be required, which will be drafted by the New Kent County Attorney and shall be fully executed prior to the disbursement of funds.
Additional Questions
Should you have any specific questions pertaining to the loan program, please contact New Kent County Director of Economic Development, Matthew Smolnik at mjsmolnik@newkent-va.us