“The heart of a small town is their small businesses,” said Steve Simonin, the President of the Clarion Economic Development Corporation (CEDC). He also pointed out what we all know- many businesses are still struggling with the economic effects of the coronavirus pandemic. With that in mind, various national, state, and local entities have sought ways to aid businesses. One local option now available is the Clarion Economic Development COVID-19 Microloan Program. Businesses are now encouraged to apply for the program.
The loan program is a joint effort combining funds from the county and the City of Clarion. In April, the Board of Supervisors approved an agreement for Wright County Economic Development (WCED) to lend $25,000 to CEDC to provide necessary assistance to small businesses who are adversely affected by changes in business or regulations imposed due to the COVID-19 pandemic. The same amount was also made available to the economic development arms of Eagle Grove and Belmond.
Cindy Litwiller, WCED Director noted, “We know that there will be businesses struggling through this. We wanted to provide what help we can.” She also added that she was pleased that cities were adding their own funds and putting “skin in the game.”
That is just what the city of Clarion did recently when the council also approved $25,000 to add to the loan program. Councilmember Andy Young explained that those funds were originally earmarked for Iowa’s Ride, which was cancelled. “When that didn’t happen,” Young said, “it freed up those funds, which came from the one-cent local sales tax. It seemed natural to use the sales tax money, much of which is collected by local businesses, to support our local businesses.”
So, in all, there are $50,000 in loan funds available for eligible businesses. The county funds can also cover businesses in Woolstock and Dows. The loans may be especially helpful as they have a 0% interest rate for 15 years with no payments required the first year.
CEDC Secretary Jordan Marker added that there are a few eligibility requirements such as businesses must have been active as of March 1, 2020. They also must meet the Small Business Administration’s table of small business size standards at https://www.sba.gov/size-standards/. Other requirements are explained on the loan application.
Simonin went on to explain that the first loan has already been utilized. Clarionites can see and feel its fruits when they walk into the Fitness Center and feel a refreshing blast of cold air. The business recently received a $5,000 loan through the microloan program that ended up covering most of the cost of their new air conditioning system. The fitness center’s acting manager Cole Lindaman said, “We hadn’t expected that our AC wasn’t going to be able to keep up this summer. If it wasn’t for the loan program, we would not have been able to afford to install the new one, which would have made the facility less appealing for members and potential new people.”
Both Simonin and Marker implore businesses to consider applying for the microloan program. Simonin added, “We think that this money could really be the solution for some businesses and maybe allow a few to stay open that were on the edge.”
The loan application is quite simple and is available on the Chamber and City’s website. Or you can contact Steve Simonin, Sherri O’Brien or Jordan Marker at Steve.Simonin@iaspecialty.com, sherrio@fsbwc.com or Jordan.Marker@iaspecialty.com. The loans will be granted until the funds are expended.
