By JAN LARSON McLAUGHLIN
BG Independent News
Lifesaving loans are being offered to Bowling Green businesses so grossly affected by the two summers of construction that they may be facing closure or layoffs.
Merchants negatively affected by the construction and in need of assistance may apply for zero percent loans for up to $10,000 from the BG Economic Development office.
Loans will be awarded on a first come-first serve basis in the amounts of $2,000, $4,000, $6,000, $8,000 or the maximum $10,000.
The first six months will be payment free, followed by 12 monthly repayment installments. Borrowers must sign a document stating that without the loan, their business would either be forced to close or lay off employees.
This is the first time the economic development office has offered such loans to businesses.
“I kept talking to the merchants,” said Sue Clark, executive director of the city’s economic development office. “They are trying so hard to be patient.”
The interest-free loans were the idea of the city’s revolving loan committee, which realized the need to make the money available.
Some of the retail shops face a critical period now, since they must go to markets soon to get their fall and Christmas merchandise.
“I knew they were hurting,” Clark said. “We just hope they hang on and get through this construction period. We’ve got to take care of the businesses we’ve got.”
The loans are being made available to any businesses hurt by the ongoing construction – both downtown and near Interstate 75, where construction was just completed on two roundabouts.
“The loans are for all businesses in Bowling Green,” Clark said. “I know there are also a lot of businesses out by I-75 that are hurting, too. It’s for everybody.”
The loans are being met with relief by some downtown businesses trying to hold on.
“The construction is affecting merchants differently,” with retail and restaurants feeling the biggest impact, said Tony Vetter, director of Downtown BG.
“Everyone’s business is down,” Vetter said. “All businesses are feeling the pinch of construction, but some are feeling it more than others.”
Vetter has already heard from some business owners interested in the loans.
“It’s already having a positive effect on merchants,” he said.
“Where else are you going to get a zero percent loan,” Vetter said. “This is a great thing for the economic development office to do.”
There will be a credit check run unless the applicant can produce a credit report dated within six months of the date of application. There will be a lien on all business assets for the 18-month period.
“They are borrowing straight money from us,” with no interest, Clark said. “I don’t want anyone to be turned away.”
The loan must be used for working capital and/or marketing.
Applications for the loans may be picked up at the Bowling Green Economic Development office at Four Corners Center, 130 S. Main St.
The loans come on the heels of a couple other efforts to help downtown businesses survive the prolonged construction.
Earlier this week, city officials announced that there will be no more charges for parking downtown through the end of the year.
And recent citizen-led efforts have been urging residents to frequent downtown businesses.
