City’s PBDC Emergency Loan Program Keeps Door’s Open
DONALD R. GREBIEN
Pawtucket – Mayor Donald R. Grebien announces the approval of 15 loans, by the Pawtucket Business Development Corporation (PBDC), to assist small Pawtucket businesses forced to close because of the novel coronavirus pandemic. The closings for these loans took place on Thursday, April 9, 2020.
PBDC’s loan program provides interim relief to small Pawtucket-based businesses with twenty-five (25) or fewer employees, who can demonstrate a loss of revenue caused by the virus crisis. The loan can be used to pay operating expenses for day to day business operations which include but are not limited to payroll and rent.
“The newly created COVID-19 Emergency Loan Program, created by the City’s Pawtucket Business Development Corporation (PBDC), was designed to get funds into the hands of business owners as soon as possible,” said Mayor Donald Grebien, noting that five more loans have been approved and the closings will take place shortly.
“With the need to quickly get the funds to Pawtucket businesses that required assistance to keep their doors open, we implemented an expedited review and approval process,” says Pawtucket’s Commerce Director Jeanne Boyle, applauding the efforts of PBDC staff, the Mayor’s Office and City’s Finance Department and PBDC Attorney, Keith Fayan.
According to Boyle, 18 applications were submitted and closings were held on the loans of 15 approved applicants in just eight days.
“With the mass layoffs taking place as the result of COVID-19, PBDC’s emergency loan program assists small business to retain or hire new employees,” says PBDC’s president, David Gold, stressing the favorable terms of the loan program. “PBDC’s emergency loan amount of $10,000 comes with a 2 percent interest rate,” he says, noting that the loan will be deferred for the first twelve (12) months after the loan is administered. After 12 months, businesses will begin to make their monthly loan payment. After repayment begins, the businesses will have two (2) years to complete full repayment of the loan.
“My closing along with the process was effortless. With the loan review and closing put together in record speed, the funds were quickly wired and available in my account,” said, one of PBDC’s loan applicants, Mr. Timothy R. O’Riley, owner of T.O.’s Bar & Grille, on Newport Avenue.
Reflecting on the City’s efforts through PBDC to support small businesses, O’Riley stated, “I am proud to be in a city that supports its local businesses.”
PBDC’s loan will allow Kips Restaurant, established in 1959, to keep its doors open, says owner Hank Macomber. “The loan’s low interest rate and first payment is not due for 12 months, preserves our cash flow and gives us the ability to quickly catch up with operating expenses, including paying utilities, rent, vendors, and insurance,” he says.
Adds Macomber, “PBDC’s loan will keep us afloat and once we reopen, we plan to rehire a full-time employee and ultimately bring back all of our staff, even hire a new cook.”