Jacksonville City Council approves new small business loan relief program

Jacksonville FL — Monday the Jacksonville City Council approved legislation that would establish a new small business relief program called the Covid-19 Small Business Relief and Employee Retention Program. The new program is in partnership with Vystar Credit Union. The city says the program will provide low cost loans less stringent underwriting requirements and flexible repayment options. The city says loans should be approved and funding quickly, between three to five days.

Mayor Lenny Curry says the program is designed to get people money fast.

“We’ve got to get money to these people, so they can, people can keep their jobs and take care of their families”. Curry says.

There is no minimum loan amount, but there is a maximum amount of $100,000. The loans will have a fixed interest rate of 5.99%.

In order to qualify the city says businesses have had to be open for at least a year and they will need to provide the most recent tax returns. They must also have between 2-100 employees in addition to business owners. The city says non-profit organizations are able to get loans through this program if needed.

The city says repayment options include a six-month draw period which will allow businesses to use what they need, and they don't need to pay interest on the entire amount at once, instead business owners will be allowed to advance and repay funds over the six-month draw period to cover expenses as they come up. The city says interest only payments will be allowed for the first year which will lead to lower repayment costs for businesses with principal and interest payments starting up in year two at an amount so the loan can be repaid within 60 months.

The city says Vystar will be providing underwriting, processing, servicing of the loans and they will be responsible for all credit losses due to default. Meanwhile, The City of Jacksonville will be providing certain grants and reimbursements of interest and/or principal balances once businesses show the city they’re meeting criteria, which includes keeping employees or re-hiring workers. The city says the benefits will be eligible for loans made in the first six-months of the program with an optional six-month extension. According to the legislation details, city funding for the program is expected to be no more than $26,500,000 over the six-year term program.

You can click here to start applying for a loan.