The city of College Station and the Bryan Business Council have partnered with the Brazos Valley Council of Governments to create a Bridge Loan Program to assist small businesses that have seen a substantial reduction in revenue due to the COVID-19 outbreak.
Small businesses need short-term working capital to cover essential expenses such as payroll, rent, and utilities. Bridge loans help businesses pay those costs until they receive more permanent assistance, such as the U.S. Small Business Administration’s Economic Injury Disaster Loan.
Bridge loans of up to $25,000 are available to qualifying businesses, which must repay the loan after receiving an EIDL. The loans have a maturity of three years at an interest rate of about three percent. No payment is required for up to six months.
Under the funding agreement, the city of College Station and the BBC each contributed $250,000 from their economic development funds. The Brazos Valley Council of Governments administers the loans at no charge, and the Brazos Valley Small Business Development Center serves in an advisory role. The BVCOG processes the loans through its existing loan review committee, along with representatives from the cities.
In addition to the 15 percent reduction in revenue, reviewers consider a business’s profitability before the outbreak, its most recent tax return, personal financial statements for anyone with an ownership higher than 20 percent, credit score, and other loans and grants for which the business has applied or received.
“We realize the importance of a healthy economy for our residents,” College Station Mayor Karl Mooney says. “For that reason, we established the Bridge Loan Program — not as a hand-out, but a hand up. As our community looks toward putting the coronavirus pandemic in our rearview mirror, we want to do what we can to help our residents and businesses return to being vibrant and nurturing of each other.”
“We’re pleased to announce our partnership with the city of College Station and the Brazos Valley Council of Governments,” says Dr. Samuel H. Harrison, president of the Bryan Business Council. “Support of Bryan businesses is core to our mission. The Bridge Loan Program could make the difference between life and death for some small businesses in Bryan.”
