Brooklyn Chamber of Commerce launches coronavirus loan program

Small businesses in Brooklyn have a new chance to score a coronavirus loan — and they won’t have to negotiate the US government’s Paycheck Protection Program to get it.

Starting Tuesday, the Brooklyn Chamber of Commerce will give out loans of up to $30,000 to any shop owner who has been hurt by the pandemic and was shut out of the US Small Business Administration’s program, The Post has learned.

The Bring Back Brooklyn Fund raised $125,000 for no-interest loans for as little as $500 and with few strings attached. Restaurants, bars, coffee shops, hair salons, daycare centers, gyms and others are required to repay the loans based on a flexible time frame. Money from repaid loans will, in turn, be lent to other businesses, Brooklyn Chamber officials said.

Ordinary Brooklynites can contribute to the fund, which was started with contributions from local merchant associations. The goal is to raise as much as half a million dollars, say officials.

“In 2008 Main Street bailed out Wall Street. Today, who is going to bail out Main Street?” Randy Peers, CEO of the Brooklyn Chamber of Commerce said in a statement.

Nearly 85 percent of Brooklyn businesses that applied for PPP loans did not receive funds, according to a recent survey by the Brooklyn Chamber. The stats were even worse for minority and women-owned businesses, with 90 percent of applicants not receiving loans.

The funds will be administered through the Brooklyn Chamber’s Community Development Financial Institution (CDFI) program, which offers microloans to Brooklyn small businesses that typically do not qualify for bank loans.

To be eligible, a business has to show that it does not qualify for other commercial loans and plans to reopen their business in Brooklyn.

Source: Read Full Article