FOR IMMEDIATE RELEASE – April 17, 2020 (Waxahachie, Texas) The City of Waxahachie is implementing a COVID-19 Emergency Loan Program (“Program”) to provide assistance to local businesses suffering from financial impacts related to the COVID-19 (coronavirus) pandemic. The purpose of this Program is to provide working capital for personnel costs, rent, utilities, etc. for existing small businesses within the City of Waxahachie, Texas.
Through the Program, $1,000,000 in total funds has been allocated. The City will provide loans which may equal up to 3 months total operating, payroll, rent, etc. and expenses, not to exceed $50,000 per business. All loans will be interest free and have no more than a 24-month repayment schedule with up to 6 months first payment deferral.
The application period for this loan will remain open until funding has been exhausted, or until the City of Waxahachie determines that the program goals have been satisfied.
“While we continue to navigate through these unprecedented times, in addition to keeping our community safe, it is also necessary to protect and assist some of our most valuable assets, which include our local businesses,” said Mayor David Hill. “Waxahachie is a strong community that has a long history of taking care of its own, and this instance is no different,” said Hill.
These small business loans are being made available from the City in the form of a “380 Agreement” between the business owner and the City. A 380 Agreement, per the Texas local government code, allows public entities to provide support to private firms under the premises of economic development or stimulus.
“Waxahachie has implemented many 380 agreements in the past, and this mechanism is a tool that has served us well, and one that has been successful,” said City Manager Michael Scott. “We are in the midst of a time when keeping our local economy afloat is extremely important, and this will help contribute to accomplishing that,” said Scott.
Eligibility & Consideration
To qualify for funding under this Program, the business applicant must meet all of the following criteria:
- Business must be physically located in the corporate city limits of Waxahachie, and must be in compliance with all applicable zoning, land use, and other ordinances. Non-profit and home-based businesses do not qualify for the COVID-19 Emergency Loan Program.
- Business must have 50 or fewer employees.
- Business must have been in operation for at least 6 months.
- Business must maintain 80% of typical staffing levels throughout the duration of the loan.
- Business must be in good standing (financial & compliance) with the City and creditors.
- Business must submit a COMPLETE application packet including:
- Completed application form,
- Most recent tax returns,
- Balance sheet, and
- Profit-and-loss statements for the last six months.
- There is a limit of one loan per applicant.
- Once awarded, a 380 Agreement and Promissory Note will be executed to complete the loan process and initiate payment of funds.
- Please note that award of these loan funds may impact funding from other Federal and State programs. Applicant should check terms of other such grant and loan programs.
- Application for this program does not guarantee award of funding. Funding will be awarded at the sole discretion of the City of Waxahachie and based on need, investment, and availability.
The application form and complete Program information is available online at www.waxahachie.com, under Economic Development, and COVID-19 Resources. If you have questions regarding this Program, or need assistance with your application, please email emergencyloan@waxahachie.com or call 469.309.4122.