Tucson businesses with 50 employees or less can get interest-free coronavirus relief loans of up to $25,000.
The loans are part of a $1 million effort backed by the city of Tucson.
On Tuesday, May 5, the Tucson City Council moved to set rules to provide the loans to the neediest of small businesses, including those owned by minorities, women, persons with disabilities and veterans, and to lower-income business owners in general, while distributing the aid geographically.
The Tucson Resiliency Direct Loan Program is administered by the Business Development Finance Corp., a nonprofit that has worked with the city for more than 30 years.
The $1 million in loan funding, approved in late April, consists of $500,000 previously on account with BDFC and $500,000 in new money from a city contingency fund.
“It’s a small effort, but it’s one of the tools we have in our toolbox to deal with this pandemic which has hit our small businesses so far,” Mayor Regina Romero said.
About $670,000 remains in the loan fund, which has been lightly marketed, and the city and BDFC are working on a bilingual loan application for Spanish speakers, said Barbra Coffee, economic initiatives director for the city.
“This is one loan program — there are other opportunities for folks to access capital,” Coffee said, citing a micro-loan program launched recently by the Community Investment Corp., Growth Partners and Kiva Tucson as one example.
Coffee recommended that cash-strapped business owners call the city’s small-business assistance line at 837-4100 for help evaluating all available funding options.
More information and an application form for the Tucson Resiliency Direct Loan Program are available on the BDFC website, bdfc.com/tucson.
During its study session on Tuesday, the council directed city staff to return with new loan criteria for the direct loan program, along with terms that the city funding — which is actually a loan to BDFC — will be repaid to the city as the loans are paid off.
The basic eligibility rules for the Tucson Resiliency Direct Loan Program:
- Eligible businesses must be located within Tucson city limits, have a valid city of Tucson business license, and be registered with the Arizona Corporation Commission in good standing (sole proprietors do not have to be registered).
- Direct loans of up to $25,000 at 0% interest are available to small businesses, sole proprietors, 1099 contractors, and 501(c)(3) nonprofits that meet the eligibility criteria.
- Loan funds must be used for working capital such as rent, payroll, marketing and utilities.
- The loans are repaid over 10 years with flexible payment options, including no payments for the first six to 12 months.
- There is no prepayment penalty and no collateral is required, but applicants who own 20% or more of their businesses must provide a personal loan guarantee.
Photos for April 23: Tucson gets by during Coronavirus Pandemic
Tucson, coronavirus
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Erika Munoz, owner of Seis Kitchen, hands over a bag of meals to Michael Gallagher Carondelet, a registered nurse at St. Joseph's Hospital, to distribute to other nurses and hospital workers, on April 23, 2020. The donation was made in conjunction with A+C (Athletes/Artists+Causes) Foundation's “Project Frontline.” In two deliveries, 400 meals (200 poc chuck chicken and 200 puerco verde burritos) will be given to medical personnel at Carondelet St. Joseph’s Hospital. The particular donation was made possible by the Houston Astros' Pitching Coach Brent Strom, who lives in Tucson.
Tucson, coronavirus
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Hospital workers wheel in carts full of catered meals donated by Seis Kitchen to Carondelet St. Joseph's Hospital, on April 23, 2020. The donation was made in conjunction with A+C (Athletes/Artists+Causes) Foundation's “Project Frontline.” In two deliveries, 400 meals (200 poc chuck chicken and 200 puerco verde burritos) will be given to medical personnel at Carondelet St. Joseph’s Hospital. The particular donation was made possible by the Houston Astros' Pitching Coach Brent Strom, who lives in Tucson.
Tucson, coronavirus
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Kristi Hall, a sixth grade teacher at Desert Sky Middle School, participates in planning a lesson with a fellow teacher on Zoom, at her home on April 17, 2020. Schools in the Vail School District are supposed to open in July due to their year-round school calendar. Plans are being made for the possibility of students returning to the physical classroom.
Tucson, coronavirus
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Bry Kelley, a warehouse assistant, places a pallet filled with food down next to other items donated to the Community Food Bank of Southern Arizona on on April 21, 2020. Forty-one thousand pounds of flour, pasta and canned goods were donated by The Church of Jesus Christ of Latter-day Saints. The donation is part of an ongoing global effort by the church to address immediate needs of people and orgainzations due to the coronavirus disease (COVID-19) pandemic.
Tucson, coronavirus
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A pallet of food is placed down next to other items donated to the Community Food Bank of Southern Arizona on on April 21, 2020. Forty-one thousand pounds of flour, pasta and canned goods were donated by The Church of Jesus Christ of Latter-day Saints. The donation is part of an ongoing global effort by the church to address immediate needs of people and orgainzations due to the coronavirus disease (COVID-19) pandemic.
Tucson, coronavirus
Updated
Christian Bergman, 4th year University of Arizona medical student, takes the temperature of a patient outside the Z Mansion, 288 N. Church Ave., in Tucson, Ariz., on April 19, 2020. Medical students from the University of Arizona and other universities volunteer to help the homeless population with the growing concerns of Coronavirus Disease (COVID-19) within the homeless population. “This is a vulnerable population in our community; they can’t defend themselves in a society already running short on supplies and resources,” said Bergman. Medical students and medical personal help by giving out food, drinks with electrolytes and masks to the homeless. Those who are sick, medically impaired or have been exposed to those with COVID-19 are isolated outdoors in tents on the property. As of Sunday April 19, there were 13 individuals whom are isolated in tents.
Tucson, coronavirus
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Lekha Chesnick, 1st year medical student at Burrell College of Osteopathic Medicine, talks with a homeless man (whom choose to not give his name) outside of the Z Mansion, 288 N. Church Ave., in Tucson, Ariz., on April 19, 2020. Medical students from the University of Arizona and other universities volunteer to help the homeless population with the growing concerns of Coronavirus Disease (COVID-19) within the homeless population. Medical students and medical personal help by giving out food, drinks with electrolytes and masks to the homeless. Those who are sick, medically impaired or have been exposed to those with COVID-19 are isolated outdoors in tents on the property. As of Sunday April 19, there were 13 individuals whom are isolated in tents.
Tucson, coronavirus
Updated
Christian Bergman, 4th year University of Arizona medical student, checks on a patient outside the Z Mansion, 288 N. Church Ave., in Tucson, Ariz., on April 19, 2020. Medical students from the University of Arizona and other universities volunteer to help the homeless population with the growing concerns of Coronavirus Disease (COVID-19) within the homeless population. “This is a vulnerable population in our community; they can’t defend themselves in a society already running short on supplies and resources,” said Bergman. Medical students and medical personal help by giving out food, drinks with electrolytes and masks to the homeless. Those who are sick, medically impaired or have been exposed to those with COVID-19 are isolated outdoors in tents on the property. As of Sunday April 19, there were 13 individuals whom are isolated in tents.
Tucson, coronavirus
Updated
Elliott Dumont, owner of Roadrunner Bicycles, 6177 E. Broadway Blvd., works on a customer's bike on April 22, 2020. The coronavirus disease (COVID-19) has not slowed down bike shops. With many people at home, they are bringing bicycles for repairs and buying new ones for exercise. Dumont says he's booked out till the first week of May for tuneups on bikes.
Tucson, coronavirus
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Elliot DuMont, owner of Roadrunner Bicycles, 6177 E. Broadway Blvd., far left, helps Ethan Sasz, far right, and his son, Evan, 10, with a mountain bike purchase on April 22, 2020. The coronavirus disease (COVID-19) has not slowed down bike shops. With many people at home, they are bringing bicycles for repairs and buying new ones for exercise. Dumont says he's booked out till the first week of May for tuneups on bikes.
Tucson, coronavirus
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Marcella Montoya waits in her vehicle as general manger David Kessler brings out her order, as Bear Canyon Pizza serving their customers despite COVID-19 restrictions, April 22, 2020, Tucson, Ariz.
Tucson, coronavirus
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Kitchen manger Koa Hoffmann tosses dough while working up a crust for a call-in order as he and few others keep cooking at Bear Canyon Pizza despite COVID-19 restrictions, April 22, 2020, Tucson, Ariz.
Tucson, coronavirus
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Alvaro Enciso, a local artist, works in one of his studios at his home on April 9, 2020. Every Tuesday Enciso travels into the Sonoran desert to post crosses where migrants have died after crossing illegally over the U.S./Mexico border as part of a project he's titled Donde Mueren Los Suenos / Where Dreams Die. With the outbreak of the coronavirus disease his six year project is on hold and instead he works on other artwork at home.
Tucson, coronavirus
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Dolly Spalding works on a pen and ink drawing in her apartment at the Redondo Tower Apartments on April 7, 2020. During her quarantine, Spalding has been creating drawings of all the Greek goddesses. She is collaborating with Emlyn Boyle, an artist from Ireland, and plans to publish a book with Boyle's writings.
