September 30, 2020
Since the outbreak of the COVID-19 pandemic, 1.4 million small businesses have either closed of suspended operations according to a study by Oxxford Information Technology Ltd. It is expected that as many as four million small businesses could be forced to shut down permanently by the end of the year, or about 13 percent of the country’s small businesses.
Richfield’s Economic Development Authority (EDA) is doing everything it can to provide financial assistance to the city’s small businesses as they try and weather the global health crisis. The authority has authorized a second round of small business forgivable loans.
“Businesses of all shapes and sizes are seeing a drastic reduction in income during the COVID-19 pandemic,” explained Richfield Chamber of Commerce Chairman Greg Worthen. “Richfield was one of the first cities in Minnesota willing to help its small businesses through this crisis in the form of a forgivable loan program. The program shows we are a business-friendly community.”
Due to the ongoing nature of the pandemic and its impact on revenue, some Richfield business owners have reached out to the authority to express their concerns about their business’s long-term financial viability.
At the authority’s September 21 meeting, the group dedicated another $118,000 for small business forgivable loans. The EDA Executive Director John Stark estimates that this will provide financial assistance for between 25 and 30 businesses.
“I applaud Richfield’s small businesses for finding new and creative ways of operating during the pandemic,” said Stark. “However, in these uncertain financial times, they still need help.”
Details of the Small Business Assistance Forgivable Loan Program include:
- $2,500 for the first employee and $500 for each additional employee up to $7,500
- Available to for-profit businesses that have operated in Richfield for at least one year
- Applicants must be registered with