Tacoma Launches Low-Interest ‘Resurgence Business Loans’

The City of Tacoma will deploy $1.1 million in low-interest loans as part of funding from the Economic Development Administration. The funding will allow five-year loans up to $25,000 that require no payments (no principal nor interest) for the first 12 months. Called resurgence business loans, the program is aimed at helping small businesses overcome the effects of the pandemic and thrive. Eligibility requirements are:

• Business (brick and mortar or home-based) must be within City of Tacoma limits
• Business has no more than 20 full-time equivalent (FTE) employees
• Business operated for at least 6 months, opened during or prior to June 2020

The loans can be used for inventory, equipment, furniture, payroll, utilities, commercial rent or mortgage (only brick and mortar businesses), working capital and other business expenses.

The loan will carry a fixed interest rate of 75% of Wall Street Journal prime rate at the time of loan closing. As of December 2020, the WSJ prime rate is 3.25%, so the City of Tacoma would be able to offer the Resurgence Business Loan at a fixed 2.44% interest rate.

Applications open January 27, and close February 21 of 2021.  To apply, businesses will need to have

• 2019 business taxes filed with the IRS
• 2020 Profit and Loss Statement (at least until Quarter 3 of 2020)
• 2020 Balance Sheet (at least until Quarter 3 of 2020)

Assistance with the applications is available.  For more information and to apply, click here.