Forgivable loans of up to $50,000 will be available to companies with no more than 100 employees, Deputy City Manager Don Magner told City Council at a July 20 meeting. The principal of the loan will be forgiven if business owners can prove they remained open for four months with at least 90% of their March 1 employee count and payroll.
Staff is proposing the city pay for the initiative by setting aside $1 million in federal Coronavirus Aid Relief, and Economic Security Act money it received through Collin County, Magner said.
Business owners in the Dallas County portion of the city can apply for similar loans through the county’s business assistance program. Richardson plans to mirror the guidelines used by Dallas County for its own initiative, Magner said.
A prequalification period begins Aug. 1. Disbursements, which will be made via a lottery system, should be complete by the end of September. A third-party organization known as the National Development Council will oversee the screening and selection process, Magner said.
More information will be available on the city’s website and social media channels once details are finalized, Magner said.