City of Chattanooga COVID-19 Small Business Relief Program

Chattanooga Mayor Andy Berke has announced a $2.5 million Small Business Stabilization Fund to help local businesses in different ways including short-term rental assistance, continued payroll for displaced workers, or larger business expansion needs. On Tuesday April 7, the City Council voted to appropriate the first $500,000 that will go to the fund.

The program will include the following for locally owned small businesses.

COVID-19 Mitigation Grants

The $2,000 - $5,000 grants will help small businesses pay for things like rent and payroll.

When should you apply?

You can apply now through May 31, 2020.

How much are the grants?

Businesses that had 1-4 employees as of March 1st are eligible to receive $2,000. Businesses that had 5 or more employees as of March 1st are eligible to receive $5,000.

Who is eligible?

  • Small businesses who are renting or leasing their spaces from a third party.
  • Must have employed 1-50 employees or workers (full time or part time) as of March 1, 2020.
  • The primary location of the business must be within the Chattanooga city limits.
  • The business must be located in a commercial space; exception: small businesses that are primarily engaged in childcare or senior care services can be located within homes.
  • Businesses must have been operating within a commercial space for at least one year.
  • Grants available to for-profit businesses only.
  • Grants will not be available to businesses that are franchised.
  • Grants will not be available to businesses that are affiliated with national or regional brands.
  • Must be able to demonstrate that government executive orders and/or laws, directives, recommendations, mandates, or policies related to preventing the spread of COVID-2019 a/k/a Coronavirus, clearly discouraged, prevented, outlawed, or disrupted the business’s normal operations.
COVID-19 Bridge Loans

The bridge loans of up to $25,000 are designed to help small businesses, specifically those directly impacted by state and local executive orders, with employee retention and working capital.

When should you apply?

You can apply now through June 30, 2020.

How much are the grants?

Up to $25,000.

Who is eligible?

  • Businesses that have employed 1-50 employees or workers (full time or part time) as of Feb. 1, 2020.
  • Businesses located within the Chattanooga city limits operating in an office/commercial space; exception: small businesses that are primarily engaged in childcare or senior care services can be located within homes.
  • Business must have been operating within a commercial space for at least one year.
  • Applicants may be encouraged to apply for additional funding via federal and state programs.
  • Loans available to for-profit businesses only.
  • Loans will not be available to businesses that are franchised.
  • Loans will not be available to businesses that are affiliated with national or regional brands.
  • Must be able to demonstrate that government executive orders and/or federal, state, or local government laws, directives, recommendations, mandates, or policies related to preventing the spread of COVID-2019 aka Coronavirus, clearly discouraged, prevented, outlawed, or disrupted the business’ normal operations.
COVID-19 HUD 108 Loans

The HUD 108 loans are greater than $25,000 and aim to help businesses in low-income areas.

When should you apply?

You can apply now through June 30, 2020.

How much are the grants?

From $25,000 up to $100,000.

Who is eligible?

  • Businesses with a primary location within the Chattanooga city limits in a low- to moderate-income census tract, or businesses that hire people from low- to moderate-income census tracts.
  • Businesses seeking expansion.
  • Businesses who wish to retain jobs.

You can now apply for each of the above funds here.

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