To help struggling local businesses during this unprecedented time, the City of Tempe and Desert Financial Credit Union have developed a first of its kind program for Tempe-based companies, creating the $1 million Tempe Small Business Emergency Loan Program.
Tempe businesses that employ between 5 and 50 people may be eligible for microloans of between $5,000 and $20,000. The intent is to help local companies overcome the financial challenges that coronavirus (COVID-19) has caused.
The funds could be used to cover payroll, rent or to pay suppliers, or anything else necessary for a business to sustain operations. The first payment for these loans is deferred for 90 days to help businesses get back on their feet.
At this time, the federal loan programs are no longer taking applications as funding is depleted, making this loan program not only necessary, but a matter of survival for many small shops, restaurants and service providers. The Tempe Small Business Emergency Loan Program could serve as many as 200 eligible companies. Loans will be awarded on a first-come, first-serve basis to qualified applicants.
“Tempe’s unique blend of education, culture and commerce is fueled by local merchants that re-invest profits right back into their own neighborhoods. Now the City is taking an innovative approach to sustaining them through this crisis. We were happy to accept an invitation from Anne Gill, CEO of the Tempe Chamber of Commerce to partner with the City to create this critical program. Together we’ll help business owners continue to deliver goods and services until recovery begins in earnest — and that benefits the entire community,” said Jeff Meshey, President and CEO at Desert Financial Credit Union.
“This Microloan Assistance Program is crucial to helping the financial situation of small businesses impacted by the Covid-19 crisis,” said Anne Gill, Tempe Chamber of Commerce President/CEO. “I am proud of our collaboration with the City of Tempe and Desert Financial, and I applaud the city’s leadership for in approving the funding to help to launch this important new program.”
City of Tempe Economic Development Director Donna Kennedy said, “Our business community partners – the Tempe Chamber of Commerce, Downtown Tempe Authority, Tempe Tourism and Local First – have been amazing in their response to our local businesses in programs like this one and our Buy Now. Save Local. program. We appreciate their willingness to come together on the behalf of our whole community so that we can keep Tempe’s businesses going strong.”
The program will end either within 3 months or until the total guaranteed amount is loaned, whichever comes first. Businesses can get started by phone or online: 602-335-6318 or www.desertfinancial.com/TempeLoanProgram.
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