AUBURN, Ala.- On Thursday, March 26, the Auburn City Council adopted a resolution creating an interest subsidy program to assist small businesses in weathering impacts from the COVID-19 world health crisis.
The Working Capital Loan Interest Subsidy Program aims to enable local businesses to remain viable in the current environment by providing an interest subsidy to applicants who have been approved for a loan with a participating lending institution. The program gives the City, in partnership with the Auburn Chamber of Commerce and seven lending institutions, the potential to infuse up to $4 million of working capital into Auburn’s small businesses.
The City will provide subsidies supporting 160+ business with a maximum of $25,000 per loan through Amendment 772 to the Alabama Constitution. Business located within the corporate limits of Auburn seeking working capital loans are eligible for the program. Borrowers must certify that the loan is necessary for a business to remain open.
“We know that federal aid is coming to help support our struggling businesses, but we felt like we needed to do something to help now,” said Auburn Mayor Ron Anders. “We truly hope that, through this program our local businesses will find the support and relief they need in these hard times.”
Those interested in participating should contact one of the following participating lending institutions: Auburn Bank, BancorpSouth, BBVA, MAX Credit Union, Regions, River Bank & Trust and Southern States Bank. Each bank has committed $500,000 each to provide eligible business with working capital loans.
“It is the Auburn Chamber’s pleasure to be a part of the collaboration between the City of Auburn and these six banks,” said Auburn Chamber President Lolly Steiner. “All seven banks are active and supportive members of the Auburn Chamber and our community, and we thank them for their partnership. Our role as the chamber is to facilitate conversation and encouragement to our 1,000 plus members, and today we believe there is great news to share. We appreciate the joint efforts between the City of Auburn and these banks to provide an option to our members during this economic downturn.”
Find details on the program at auburnalabama.org/coronavirus/business-resources/interest-subsidy. Contact information for each of the participating institutions will be posted soon. Find more details about the City’s response to the COVID-19 pandemic at auburnalabama.org/coronavirus.