Texas small business owners can apply for COVID relief loans through new fund
Texas small businesses and nonprofits could get more help alleviating coronaviruses through the new Southern Opportunities and Resilience Fund (SOAR).
The SOAR Fund is a new program available to help small businesses and nonprofits rebuild after the economic crisis of COVID-19.
Data from the US Census Bureau shows that 57% of small businesses in Texas have less than two months of cash flow, and 35% of small businesses in Texas plan to raise capital within the next six months.
With the help of philanthropic, private and corporate investors, the SOAR fund hopes to help “smaller businesses and those that have been historically underbanked, including those in rural areas and those owned by women, people of color and immigrants, ”according to a statement.
Eligible applicants will be matched with a participating lender who will assist the business owner with the application and provide advisory support. Applicants will be able to register online and be matched with a lender in less than five minutes.
The maximum loan amount available is $ 100,000 or up to 100% of your business’s income for any three-month period before the coronavirus pandemic in 2019 or the first quarter of 2020, whichever is less. The full loan conditions can be viewed here.
“We encourage all small businesses and nonprofits that have been affected by the COVID pandemic and need a helping hand to rebuild to apply now,” said the vice president of strategy and program development at the Patrick Davis Community Reinvestment Fund.
“This is affordable capital that can help small business owners and nonprofits hang on and rebuild, which is vitally important to all of us,” Davis said. . “Strong small businesses and nonprofits in the South will lead to a strong economic recovery for communities in the South. “
There will be $ 50 million in initial commitments for the SOAR Fund, with the goal of eventually lending $ 150 million to small businesses in a handful of southern states, including Texas.
A business or nonprofit must have 50 or fewer employees to qualify and have experienced direct economic disruption as a result of the coronavirus pandemic.
Businesses that are NOT eligible include, but are not limited to:
Businesses engaged in activities prohibited by federal law or applicable law in the jurisdiction where the business is located or carried on
Payday Loan Stores
Astrology, palm reading
Adult bookstores, strip clubs
Track pay facilities
The SOAR fund covers Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia and the District of Columbia.
To learn more about the SOAR Fund, click here.
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