(INDIANAPOLIS) – In an effort to secure much-needed federal assistance for small businesses in Indianapolis impacted by COVID-19, the Indy Chamber through its Business Ownership Initiative will begin processing federal Paycheck Protection Program (PPP) loans today in partnership with Bankable of the Flagship Enterprise Center. This partnership was significantly bolstered recently by a commitment of up to $25 million from the City of Indianapolis to fund these loans through the Chamber’s Rapid Response Loan Fund. Use of these funds was strongly supported by Indianapolis Mayor Joe Hogsett and unanimously approved by the Indianapolis City-County Council.
“Thanks to the council’s quick action, we are able to ensure small businesses in Indianapolis have a greater chance of taking full advantage of this new federal assistance,” said Mayor Joe Hogsett. “This unique partnership is a testament to the innovation and collaboration that has always helped Indianapolis tackle big challenges. Small businesses are the backbone of our local economy and we must do everything we can to support them during this difficult time.”
The Chamber and Bankable will process PPP loans of up to $75,000 for Marion County businesses. Accepted loans will be guaranteed by the U.S. Small Business Administration (SBA) and are forgivable for designated uses. These federal assistance dollars are in high demand, and funds are limited. If federal funding runs out, the Indy Chamber will save completed applications for future funding opportunities. Entrepreneurs and small business owners can learn more and begin the application process at response.indychamber.com/loans.
This latest initiative draws on the success of the Indy Chamber’s Rapid Response Loans, which to date have provided over $2 million in bridge loans of $1,000-$25,000 to area small businesses. Over 50 percent of current loan recipients have been to minority-owned or woman-owned businesses. These loans were funded by a significant collaboration amongst public, private, and philanthropic organizations.
“There is overwhelming demand for financial assistance in our small business community,” said Indy Chamber President and CEO Michael Huber. “While no system was built to service this level of need, the Indy Chamber is doubling down on its mission to ensure all have the opportunity to succeed by taking bold action in the face of an existential threat to small business.”
According to the SBA, the Paycheck Protection Program is a loan designed to provide direct incentive for small businesses to maintain the employment of their workers. The SBA will forgive these loans if all employees are kept on the payroll for eight weeks and funds are used for payroll, rent, mortgage interest, or utilities. Use of these funds for other purposes will accrue 1% interest over a 2-year term.
Information on resources for small businesses affected by COVID-19 is available via the Indy Chamber Rapid Response Hub at response.indychamber.com.
