The Pennyrile Area Development District announced a business relief loan program to help regional businesses recoup some of their working capital losses caused by the COVID-19 pandemic.
The COVID-19 Business Relief Working Capital Loan program was set up to help businesses in the industrial, commercial, agricultural and service sectors and is funded through the CARES (Coronavirus Aid, Relief and Economic Security) Act through the Economic Development Administration (EDA).
The loans are administered through the Pennyrile Area Development District (PADD).
“(The loan funds) were allocated to us because we do operate an existing loan fund program under (EDA’s) traditional lending program,” said PADD Associate Director Amy Frogue, who administers the district’s loan programs, on Thursday.
“These were made available for us to loan out to small businesses that have working capital needs in our nine-county region to pay items such as utility payments, rent payments, if they have any sort of debt service that they need to pay off, supplier payments — things of that nature. They can also be used for payroll.”
The amount of the loans range from $5,000 to $25,000 to be repaid within up to 36 months with a six-month deferral from the date of the loan closure.
“This is working capital to help them keep their doors open,” Frogue said.
Applications for these loans began July 1 and will be open for 24 months or until the funding — totaling $690,000 — is no longer available.
“We have had several calls and a couple of applications have already come in,” Frogue said.
The Pennyrile Area Development District is a public planning and development organization collaborating with local leaders, agencies and staff striving to support regional strategies, solutions and partnerships.
PADD oversees projects for the counties of Caldwell, Christian, Crittenden, Hopkins, Livingston, Lyon, Muhlenberg, Todd and Trigg.