The City of Moline has amended one of its Community Development Block Grant (CDBG) CARES Act funding initiatives, converting a previous loan program that offered 0% interest into a forgivable loan program.
Federal CARES Act funds were distributed by the U.S. Department of Housing and Urban Development to the City of Moline’s CDBG program, a news release says. The funds contain emergency relief resources for communities to prevent, prepare for, and respond
Earlier this year, the city had allocated $110,000 of its allotment under the CDBG program to help
relieve the impact of the COVID-19 pandemic. The CDBG program, administered by the Federal
Department of Housing and Urban Development, provides funding to cities for a variety of
programs, including community development, housing and business assistance.
The city’s annual allocation for 2020 was $812,530, and the city has received an additional $478,057 in supplemental funds for COVID-19 related programs.
The action taken at a recent City Council meeting will provide loans of $5,000 to each eligible small business, and those loans will be forgiven providing program requirements are met. To qualify, a business must meet the eligibility criteria, including having at least two, but no not more than 50, employees (including the owner/s), and were operating in March 2020.
For the loan to be forgiven, the business must continue to operate (with at least one employee) for six months after receipt of the loan. The “forgivable” feature of the loan rests on the ability of the borrower to retain jobs that are held by those of low or moderate income (full-time equivalent), meaning those earning less than 80% of the annual Area Median Income (AMI). In Moline, the annual AMI for a single person is $42,250.
The application window will open Dec. 14 and close at 5 p.m. Jan. 3, 2021. Once closed, applications will be reviewed by the selection committee, on a “first-in” basis, for accuracy and compliance with program criteria.