HAMPTON, Va. (WAVY) — While the federal government has already rolled out its plans to help out small businesses during the COVID-19 pandemic, Hampton wants to offer additional aid for those located in the city.
Wednesday night, Hampton City Council voted unanimously during their electronic meeting, to redirect $500,000 within the Economic Development Authority to launch a forgivable loan program exclusively for Hampton businesses.
While the Small Business Administration launched its program last week to help small businesses stay afloat during the crisis, the city wants to provide another avenue for those businesses that make up a large part of the local economy according to City Manager Mary Bunting.
To be eligible to apply the business must make less than $1 million a year, prove that it has faced financial losses because of the COVID-19 outbreak, and already have applied for relief through the federal program. After proving that the relief available under that federal program will not be enough to sustain its operation, then — and only then — could the business receive up to $10,000.
“Each loan awarded may be wholly forgiven if the awardee is current on all taxes and fees owed to the city on and due through August 1, 2020,” the resolution reads.
The Hampton EDA is expected to develop the specifics of the program at its next meeting, Bunting said.
Council also voted to extend the due date for the payment of real estate and personal property taxes
from June 5 to Aug. 1.
However, unlike the blanket extensions passed in Norfolk and Virginia Beach, Hampton taxpayers will have to prove “financial loss or strain directly attributable to the COVID-19 disaster” and appeal to the city treasurer by May 15 to participate.
Find a link the application here.
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