Press Release: CIC LAUNCHES SECOND ROUND OF BUSINESS RECOVERY FUND LOANSMay 4, 2021
For Immediate Release
May 4, 2021
CIC LAUNCHES SECOND ROUND OF BUSINESS RECOVERY FUND LOANS
Loans provide capital to businesses as they bounce back from impacts of COVID-19
CHARLOTTESVILLE, VA — The Community Investment Collaborative (CIC) announced today that they are launching a second round of lending through the Business Recovery Fund created in April 2020 at the onset of the pandemic. The fund will provide flexible and affordable loan capital of up to $15,000 to microbusinesses impacted by the COVID-19 pandemic as they work to recover and rebuild. It’s designed to help those businesses that delayed investments or who need to recapitalize to take advantage of the economic recovery.
A partnership of Albemarle County, the City of Charlottesville and CIC, the Business Recovery Fund made nearly $600,000 in loans in May and June, 2020, to help businesses with emergency working capital as the community locked down at the onset of the pandemic. Those funds had 6 months of no payments and then began repaying in January 2021. To date all of the initial loans are current on loan payments.
“Last year, we worked with Charlottesville and Albemarle to provide much needed working capital in an incredibly uncertain time, helping businesses keep essential bills paid while navigating the constant changes to their business model,” said Stephen Davis, President of CIC. “We had thought the loans would provide capital to help weather the summer until the health conditions improved. While many businesses adapted, the pandemic lasted much longer than any of us wanted. Now, a year later, we’re looking to put the money that’s been repaid back out to help businesses who need to recapitalize or who have delayed on essential purchases to help their businesses.”
Due to other loan fund opportunities available at the state and national levels, this Business Recovery Fund is targeting microbusinesses with annual revenue under $250,000.
Loan capital is available for businesses in the CIC service region (City of Charlottesville and Albemarle, Fluvanna, Greene, Louisa, Orange, Nelson, Culpeper, Madison and Rappahannock Counties) and is allocated based on funding source. Albemarle County and the City of Charlottesville provided half of loan funds and funds from those communities will only be used for businesses in their respective communities. At least $150,000 is available for loans through the program, with more possible pending future loan repayments.
The fund will open to applications on Monday, May 8, and the priority deadline for completed applications will be Friday, May 28, 2021. If there is still funding available after the initial deadline, applications will be considered on a rolling basis.
Businesses seeking to apply or more information can visit http://cicville.org/business-recovery-fund/
Community Investment Collaborative (CIC) is a Community Development Finance Institution with a mission to strengthen our community and contribute to economic development by fueling the success of under-resourced entrepreneurs through education, mentoring, financing, and networking. Learn more about CIC at www.cicville.org.