CITY OF LA GRANDE, OREGON

EMERGENCY BUSINESS LOAN PROGRAM

APPLICATION DATE EXTENDED

 


The City of La Grande is working in partnership with local, state and federal officials to respond to the adverse economic & market conditions created by COVID-19 and the necessary public health measures to combat the virus. 

This emergency loan is only one small part of the massive social and economic response needed for this crisis. While we recognize the vast additional need, we have to be realistic about the role we can play.  We are making available City General Fund dollars to fund a limited number of loans of up to $10,000.  Priority will be given to businesses that provide essential services such as food service, groceries, and retail. 

Loan applications will be accepted until funding is exhausted. 

The Emergency Business Loan Is Intended To:

  • Help businesses remain solvent through the crisis and be ready/able to rebuild;  

  • Fill specific cash flow gaps in businesses’ larger efforts to scale down, reduce expenses, and take any additional defensive measures to survive the crisis. 

The Emergency Business Loan is NOT:

  • Intended to replace lost business income;

  • Intended to fund pre-crisis-level operations;

  • A mechanism to pay wages of staff that the business can no longer financially support;

  • A low cost business loan for industries relatively un-impacted by the crisis.

Eligible Businesses:

  • MUST be physically located within the City of La Grande City Limits; 

  • Those immediately impacted by public health restrictions;

  • Had 50 or fewer employees when operating at full scale (defined as December 2019);

  • Were generally stable/strong prior to the crisis.

Acceptance of this loan includes a commitment to monthly reporting and ongoing technical assistance. 

   

 Initial Required Documentation

1.  Completed City of La Grande Emergency Loan Application

2.  2019 Tax Filing or 2019 Profit and Loss Statement

3.  February 2020 30-Day Interim Financials

4.  Attach a copy of your current business plan.  If you do not have a business plan, you will be asked to complete one prior to month 3 of your deferral.

 

 
 

FAQs - Frequently Asked Questions

1.

 

 

Q: Is my business eligible for this loan if our business is operating as usual?

A: No. This loan is designed to help businesses combat short-term crisis-related adverse conditions.

2.

 

 

Q: Am I eligible if my business is completely closed due to public health restrictions?

A: Yes. We understand that businesses may have zero income during this time. We ask that you also explore every possible other measure of support (e.g. forbearance on existing loans, reduction in rent, etc.)

3.

 

 

Q: What can the loan be used for?

A: It depends. Each business will have unique needs, so you will need to clearly explain in your emergency plan how the funds will be used and how that will help you through the crisis. It might be covering rent/insurance while your restaurant is closed. It might pay off net 30 invoices from pre-crisis. There are no specific limitations. 

4.

 

 

Q: Are borrowers required to personally guarantee this loan?

A: Yes.

5.

 

 

 

Q: What happens if this crisis extends longer than expected, my contingency plan doesn’t work, and I have to close the business permanently?

A: None of us can predict the duration or extent of this crisis. If your business closes permanently within the next 12 months, we will do our best to work with you on a solution.

6.

 

 

 

Q: If I already have an Urban Renewal Loan, does this loan release me from my existing loan payments or other financial obligations?

A: No. Any desire to modify existing loan payments must be requested separately.

7.

 

 

Q: Do I need collateral for the loan?

A: No.

8.

 

 

 

Q: What happens when/if the loan fund runs out of money?

A: We expect that this will happen. When it does, we will place applications on a waiting list in date/time order of submission.  Qualified loans will be reviewed for priority criteria and funded on a first come, first-served basis.

 

9.

 

 

Q: Will this loan impact my eligibility for other government assistance?

A: Not that we know of, and we will follow other assistance programs closely, to monitor the impact of these loans on other programs. The City of La Grande does not want this product to block other resources, and can adjust this program accordingly.

10.

 

 

Q: A: Can I apply for this loan if I don’t have a Social Security Number?

Yes. Please provide your Tax Identification Number in the appropriate application field. 


You can download the loan application here.

Please send completed application and required initial documents to:

[email protected]

If you have questions about the application or the Emergency Plan, please contact Christine Jarski at [email protected] or (541) 962-5994. 

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