Mayor Joe Hogsett and the Indian Chamber announced on Monday the creation of a quick release loan fund for small businesses in central Indiana that have been affected by the COVID-19 outbreak. The goal is to raise $ 10 million for the fund.
Almost $ 3 million has already been committed to the fund, including $ 1 million from Indianapolis-based Anthem Inc. and $ 1.5 million from the city of Indianapolis. The Indy Chamber said it is calling on the business and philanthropic community to help it reach its goal of $ 10 million.
The city’s contribution includes $ 500,000 from the Indianapolis Local Public Improvement Bond Bank and $ 1 million from the Capital Improvement Council. CIB funding has been earmarked for the agri-food industry, which has been hit hard by restrictions linked to the pandemic.
CIB-funded loans will provide working capital to existing food and beverage industry entrepreneurs to keep their businesses afloat, providing bridging loans while traditional US Small Business finance or disaster recovery loans. Administration materialize, which should take four to six weeks.
“Our restaurants and bars are part of what powers Indianapolis as a city of conventions and events,” said Andy Mallon, executive director of the Capital Improvement Board, in written comments. “We want to do our part to help our entertainment and food service partners be there to welcome our convention business when it returns. “
Other initial funders include the Indy House, which contributed $ 300,000, and LISC Indianapolis, which gave $ 75,000.
The pledges announced, combined with the existing loan fund balance of $ 840,000, bring the fund to just over $ 3.7 million.
Businesses in the nine county area will be eligible for loans. Loans will range from $ 1,000 to $ 25,000, depending on need.
The Rapid Response Loan Fund will be administered by the chamber’s Business Ownership Initiative (BOI) and other partners. The BOI recently focused on emergency aid to small businesses affected by COVID-19 through free one-on-one business coaching and access to loan capital.
Indy Chamber staff, as well as professors and alumni of IU Kelley School of Business at IUPUI, leaders of the Indianapolis Bar Association, communication professionals from Vox Global and other experts are available to answer small business questions through the chamber’s Quick Response Hub. .
“Time is running out for local entrepreneurs and small businesses,” Indy Chamber CEO Michael Huber said in written comments. “While federal loans and tax credits will provide significant relief, our businesses need more immediate financial support. We call on all major employers, financial institutions and philanthropic organizations to join us as we invest in the livelihoods of our small business community. “