EL PASO, Texas (KTSM) – The City and County of El Paso have each approved $1 million to establish a Small Business Emergency Relief Program to help finance new small businesses and startup companies.
The fund is managed by LiftFund, and they will be responsible for distributing $1.7 million in funds.
The new program will allow eligible businesses to apply for zero-interest loans and grants.
According to LiftFund, businesses can receive a loan for up to $25,000 and a grant of up to $5,000.
LiftFund will start taking applications beginning Wednesday, April 1, 2020, on its website: www.LiftFund.com.
“During this time of uncertainty many small businesses have been forced to close in order to protect the community from the spread of COVID-19, and this program will provide an opportunity for them to reopen after restrictions are lifted,” said Mayor Margo. “We need to come together and support our local businesses as we recover economically.”
“Many businesses are facing unprecedented challenges as we try to protect public health and safety during the Covid-19 pandemic,” said County Judge Samaniego. “This program is meant to help affected businesses weather the storm.”
According to a release, this partnership will help ensure small businesses have an opportunity to stabilize during this uncertain time.
“This investment and gift by the City and County is a start, and our small business community needs us now more than ever,” said Lupe Mares, Vice President of LiftFund El Paso.
Businesses with 10 employees or less are eligible to apply for a loan, and businesses with 5 employees or less may apply for a grant.
In order to qualify, businesses must have been operating since August 2019, have good credit, and must prepare a six-month recovery plan and work capital plan that demonstrates the award will help them get through this time of uncertainty, a release said.
LiftFund will also be required to make a $1,200,000 balloon payment within four years that will be used to establish the El Paso Dream Makers Fund. The fund will be a permanent revolving loan fund for small businesses and will be administered by LiftFund.