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 PBDC OFFERS COVID-19 LOAN ASSISTANCE TO SMALL BUSINESSES 

Given the extended duration of the COVID-19 pandemic and its continuing severe impacts on Pawtucket’s small businesses, Mayor Donald Grebien announces that the City of Pawtucket now offers two loans, a COVID-19 Emergency Loan (up to $10,000) and a Forgivable Loan Program (up to $5,000).  These lending programs were created by the City’s Pawtucket Business Development Corporation (PBDC) to get needed operating funds quickly into into the hands of small business owners as soon as possible.

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“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,” says Mayor Grebien.  “In addition to our initial  COVID-19 Emergency Loan Program, PBDC’s Forgivable Loan Program comes from these conversations,” he notes.

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According to the Mayor, PBDC’s two COVID-19 loan programs provide interim relief to small businesses with 25 or fewer employees.  To be eligible for the COVID-19 Emergency Loan Program, a business must demonstrate a 30 percent loss of revenue caused by the continued virus crisis.  However, if applying for the Forgivable Loan Program, the percentage of loss of revenue must reach 50 percent.

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Funding from both loan programs can be used to pay operating expenses for day-to-day business operations, which include but are not limited to rent, utilities, insurance, marketing costs and supplies.

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PBDC will require business owners submitting the completed application to either be low-moderate income or to provide documentation that at least one (1) low-moderate job be either created or retained. The application will include income guidelines.

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PBDC’s Emergency Loan amounts of $10,000 comes with a 2 percent interest rate.  Due to the ongoing hardships caused by COVID-19 virus outbreak, PBDC’s loan will be deferred for the first twelve (12) months after the loan is administered. After 12 months, businesses will begin to make their monthly loan payment.  After repayment begins, the businesses will have two (2) years to complete full repayment of the loan.

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For PBDC’s Forgiveness Loan Program, the emergency loan amount of $5,000 comes with a low 2 percent interest rate.  Due to the continuing hardships caused by COVID-19, PBDC’s loan is deferred for the first 12 months after the loan is closed.  After 12 months, businesses will begin to make their monthly payments and will have two (2) years to complete full repayment of the loan.  However, this loan will be forgiven after the first year if one (1) job is either created or retained, he notes.

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Funding is limited for these programs, and applications will be reviewed on a first come, first serve basis.  Only completed applications, signed and dated, will be considered ready for review.

Businesses can download the application below:

For a PBDC COVID Emergency Loan application, click here.

For PBDC Forgivable Loan Program, click here.

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You can either mail the application or drop it off addressed as follows:  Attention:  Pawtucket Business Development Corporation, City of Pawtucket, 137 Roosevelt Avenue, Pawtucket, RI 02860.  Please contact Herb Weiss, the City's Economic and Cultural Affairs Officer, with any questions or comments at his office (401) 728-0500, Ext. 437, or by e-mail at hweiss@pawtucketri.com.

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