City of Lorain Small Business Stabilization Program
Applications must be submitted electronically to [email protected] or mailed to Lorain County Chamber of Commerce, Small Business Stabilization Program, 226 Middle Avenue, Elyria, OH 44035 .
The purpose of the SBSP is to help businesses prevent, prepare for or respond to coronavirus and the related economic downturn and recovery. There are two components to the program. The first component is a forgivable, no-interest loan designed to help local businesses avoid financial hardship, remain in operation and/or re-open after the state mandated non-essential business shutdown. Businesses may also apply for a separate forgivable, no-interest loan to protectively retrofit their place of business in accordance with state and county public health guidelines. Applicants may apply for either one or both components. Each component serves as an additional resource to businesses that applied for financial support from state or federal programs as a result of the coronavirus pandemic but need additional support.
Potential applicants for the forgivable loan should understand the following specific elements of this special assistance for business stabilization:
Businesses that received state or Federal assistance must acknowledge and identify all costs covered by the assistance to avoid a duplication of benefits (DOB) with the City’s program.
This is a summary of the Small Business Stabilization Program Information. Read the Program Requirements for full details.
To be considered eligible to apply for a SBSP forgivable loan, a business must meet the eligibility criteria below in order to submit an application to the Chamber:
Be located within the City of Lorain and have fifty (50) or fewer employees on March 22, 2020 when Ohio Governor Mike DeWine and Department of Health Director Dr. Amy Acton announced a stay-at-home order in response to the coronavirus pandemic
- Qualified businesses are eligible to receive up to a maximum of $10,000 from both program components (For example: $5,000 Business Operations/$5,000 Protective Retrofit).
- The minimum application request for either program is $2,500.
- The number of forgivable loans will be limited and will be awarded to qualified businesses submitting complete applications on a first received, first awarded basis.
- Businesses must retain one or more jobs for a low-and-moderate income person(s) (computed on a full-time equivalent basis).
- Businesses must have applied for assistance for the same purposes from the Paycheck Protection Program (PPP Loan) or Economic Injury Disaster Loan (EIDL) program through the Small Business Administration (SBA), CARES Act Recovery Assistance through the Economic Development Administration (EDA), or any other state or federal government agency.
Businesses that are not eligible to apply for the program include:
- Operate from a commercial or retail storefront in the following sectors: restaurants, bars, salons, barber shops, gyms/workout facilities, tattoo parlors, bowling alleys, dry cleaners, event and banquet centers and general retailers, including automotive repair shops
- Be organized as a for-profit entity as defined by the IRS
- Hold a certificate of registration with the Ohio Secretary of State to do business in the State
- Maintain a valid registered business license with the City of Lorain
- Have been in operation as a business for at least one year prior to March 22, 2020
- NOT be currently in receivership, bankruptcy or have any Federal, state or county tax liens against the business
- Any business with more than three (3) locations
- Non-storefront based small business and/or home-based businesses
- Gas stations, automotive parts shops
- Professional Service businesses
- Any business operating as an entertainment device arcade
- Any business operating as a sexually oriented business as that term is defined in Section 2907.40 of the Ohio Revised Code
- Any business that primarily sells tobacco products, cigarettes, electronic smoking devices, or vapor products as those terms are defined in Section 2927.02 of the Ohio Revised Code
- Any financial institution that makes loans or issues credit to the public, including, but not limited to, banks, credit unions, payday lenders, or any other similar business
This is a summary of the Eligibility Requirements. Read the Program Requirements for full details.
Final eligibility and ineligibility determinations and Awards shall be solely at the discretion of the Underwriting Team.