Introducing the CCIDA Cares Loan
The U.S. Economic Development Administration (EDA) officially announced on September 9, 2020, that the County of Chautauqua Industrial Development Agency (CCIDA) was selected as the recipient of a $10.5 million allocation through the CARES Act, which will enable the agency to establish a new Revolving Loan Fund (RLF). The RLF will provide capital in the form of low-interest loans to both businesses and non-profit organizations as a means of responding to economic injury resulting from the COVID-19 pandemic. The CCIDA is employing an allocation strategy that is systematic, inclusive, and equitable so it can expeditiously deploy the funding while having maximum impact in the community.
The CCIDA CARES Loan Program
Eligible applicants must conduct business in Chautauqua County, demonstrate that they have been negatively impacted by COVID-19 and that they are subsequently in need of financing, they have an ability to re-pay the loan, pledge sufficient collateral, and have an established track record. All business sectors (with the exception of housing) are eligible, including not-for-profit agencies. This includes, but is not limited to, the manufacturing, professional services, hospitality, commercial, retail, and agricultural sectors. Because of the competitive nature of this program, applicants are required to demonstrate 1) how the funding addresses a challenge created by the pandemic; 2) how the funding will retain or create jobs; and 3) how the funding will leverage other private or public capital.
Use of Funding
The RLF will provide loans of no less than $25,000 and not exceeding $1 million, and working capital loans of up to $250,000. The interest rate is fixed at 2.44% (the lowest allowed), and the funding can be used for capital improvements, machinery, equipment, inventory, and working capital expenditures with loan terms to match the useful life of the pledged asset.
Eligible applicants may submit loan applications at any time, as long as funding is available. Loans will be considered for approval and processed in several rounds starting in October 2020.
The CCIDA is an economic development organization authorized and empowered by the State of New York to make Chautauqua County a better place to work, live, visit, and conduct business. The organization facilitates development by attracting new businesses, while promoting the retention and expansion of existing businesses. Assistance in the form of incentives – tax abatements, low interest loans, and bond financing – enhances the opportunities for job creation and retention for our businesses. For more information, visit www.ccida.com.
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