Economic Relief Loan Fund for Small Businesses

The Economic Relief Loan Fund was created to boost recovery for small businesses financially impacted as a direct result of the Coronavirus (COVID-19) by providing short-term loan funds for continued business operations.
 

Loan Guidelines: 

• Loans up to $10,000 will be based on demonstrated need. 
• Businesses must have ten (10) or fewer employees. 
• There are no loan fees and no prepayment penalties. 
• The loan term is 60 months and the interest rate is 5%. Loans will have a ninety-day grace period before payments begin. 
• A business may receive only one loan from the fund.
• Loans made be used for: rent, payroll, inventory/supplies, utilities, equipment replacement and increasing on-line sales capacity. 
• Affected businesses that have insurance claims pending or have applied for a business loan from another source MAY also apply for this loan. 

 

Process: 

The loan application gathers information about the business, how it was affected by COVID Crisis, how much financial assistance is needed, and how loan funds will be used if the loan is approved. 

• Applicants should submit a complete, signed Economic Relief Fund Application to SCOEDD at P.O. Box 1529, Klamath Falls OR, or via email to betty@scoedd.org 
• Business owners will be contacted by a SCOEDD staff member to schedule to discuss business needs and how the funds will be used. Staff will also verify the financial status of the business prior to the associated economic crisis.
• The loan request will be considered taking into account the financial health of the business before the crisis and how the loan funds may have a significant effect on the businesses’ ability to reopen or continue operations.
• If approved, SCOEDD will try to make funds available to the business owner within one week of receiving and approving the application. This timeline may be longer depending on the volume and completeness of loan applications.
• To help determine the effectiveness of this disaster loan program and as part of participating in the program, business owners will be asked periodically to provide updates on the financial condition of the business for one year from the date of the loan. 

For more information contact Betty at (541)884-5593 or betty@scoedd.org.