Wilmington will offer helping hand to city businesses needing access to coronavirus assistance

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Wilmington Mayor Mike Purzycki and City Economic Development Director Jeff Flynn said city government will help Wilmington business owners and nonprofits gain access to assistance and funding programs.

Assistance is being offered under the federal Coronavirus Aid, Relief and Economic Security (CARES) Act and the State of Delaware’s Division of Small Business. The CARES Act allocates $350 billion in federal grants and loans for small businesses dealing with the COVID-19 pandemic. An overview of assistance programs can be foundhere.

“If you own a business of any kind or size in Wilmington, take full advantage of any of these programs for which you may be eligible,” said Mayor Mike Purzycki. “For example, apply for the EIDL disaster loan, which will provide up to $10,000 of economic relief. Our Economic Development team is committed to assisting you and your business as we all cope with the COVID-19 pandemic.”

“For sole proprietors and businesses with one or two employees, the IEDL Loan with the $10,000 advancement is the simplest option and will be relevant for most small businesses,” said Economic Development Director Flynn.

Mayor Purzycki said DaWayne Sims, the City’s Small & Minority Business Development Manager is ready to assist businesses and agencies in accessing the federal and state programs. “We strongly recommend business owners explore this unique funding opportunity immediately,” said Sims. Sims can be reached at (302) 576-2127(office),(302) 545-1812 (mobile), or via email atdsims@WilmingtonDE.gov.

It was also noted that the Delaware Small Business Administration holds a daily call at 3 p.m., Monday through Friday, for all business owners who want to learn more about the programs detailed in this release. To join the daily call, dial 1-202-765-1264 and enter the passcode #827299626.

The following are summaries of the programs available to City businesses and nonprofits provided by the city.

E.I.D.L. (Economic Injury Disaster Loan):

  • Existing Direct Government lending relief program
  • $10,000 Advance Grant for all Applicants
    • This Advance Grant converts to a Grant once approved
  • Total available Loan Amount up to $2 million and up to a 30-year Term
    • Both Loan Amount and Term determined by the SBA
  • Fixed-Rate for the Term
    • 3.75%
    • 2.75% (approved Not for Profit Organizations)
  • No Fees and 12 months no payments
  • For applications and additional details please visit the SBA link below:
  • https://www.sba.gov/page/disaster-loan-applications#section-header-0

Paycheck Protection Program (P.P.P. or P-cubed):

  • New program under C.A.R.E.S. Act via SBA network of Lenders
  • Forgivable Loans to Small Businesses to cover employees during COVID-19 crisis
  • The loan amounts will be forgiven if:
    • Loan proceeds are used to cover payroll costs, most mortgage interest, rent, and utility costs over the 8-week period after the loan is made
    • At least 75% of Loan must be used for qualified Payroll expenses
    • Employee and compensation levels are maintained
  • 1% Fixed Interest Rate; No Payments 6 Months
  • For applications and additional details please visit the U.S. Treasury link below:
  • https://home.treasury.gov/system/files/136/PPP–Fact-Sheet.pdf

Debt Relief Program:

Express Bridge Loan Program

NOTE: SBA Helpline number is 800.659.2295.

In addition to the federal programs, the State of Delaware’s Division of Small Business has expanded theHospitalityEmergency Loan Program (HELP)to aid hospitality-related businesses in Delaware that have been economically impacted by COVID-19.

This program makes available no-interest loans of up to $10,000 per business per month and is open to businesses with less than $1.5 million in annual revenue and have been operating for at least 12 months. The loans carry a 10-year term with payments deferred for 9 months. For more information, visit thislink.

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