The Fairfax County Board of Supervisors approved a $2.5 million Small Business COVID-19 Recovery Fund that will provide loans of up to $20,000 to eligible Virginia businesses.
The micro loans will be principle and interest-free for six months, and carry a six-year term with an interest rate of 3.75% after the initial six months.
Loans will be available on a first come, first served basis to small businesses based in Fairfax County with fewer than 50 total employees. In addition to demonstrating financial hardship due to COVID-19, companies that apply must prove financial viability and have no outstanding tax liens or legal judgments.
Applicants will be required to participate in a pre-submission counseling session and be recommended by a Fairfax County-recognized small business counseling program.
“There are a number of federal programs available right now to help small businesses survive. The Fairfax County micro loan funding and supportive counseling are complementary to those programs,” said Fairfax County Board of Supervisors Chairman Jeffrey McKay.
The Community Business Partnership will administer the micro loan program will lead a network to provide small business counseling.
The micro loans can be used for a variety of affected small business needs, including working capital, equipment, rent, debt payments and other operating expenses.
Applications will be accepted starting April 28.
There are more details on Fairfax County’s Small Business COVID-19 Recovery Fund online.
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