The application window for the loan portion of the Lancaster City Small Business Emergency Fund is now closed. You will here about our loan decisions in the coming weeks. Please continue checking back here for future updates.
In the spring of 2020, The Lancaster City Small Business Emergency Fund was created to provide emergency relief to small businesses located in Lancaster City struggling due to the economic impact of the COVID-19 shutdown. The focus of the fund is to support vulnerable small businesses in local communities that have disproportionately not received federal funding support. Click here to download a PDF of the final report summary of the program.
Despite the first round of success, the small business community continues to experience the ongoing impact of the pandemic, social unrest, and environmental injustice. Black, Indigenous and People of Color (BIPOC)-owned small businesses in particular have struggled to access relief funding and stay afloat.
To help combat these struggles, the loan portion of the second round of the Emergency Fund will open in June of 2021 with $700,000 available in highly flexible, low-interest loans. This Fund will also focus on investing in the success of those businesses most critically impacted by COVID-19, specifically Lancaster City’s small businesses in the food service, salon and barber shop, arts and entertainment industries.
BUSINESS QUALIFICATIONS AND ELIGIBILITY REQUIREMENTS
|Purpose||This fund is intended to support an inclusive and diverse small business environment within Lancaster City. Businesses with up to $2 million in annual revenue may apply.|
|Business Qualifications||The loan program is ONLY available to barbershops, salons, arts and entertainment, and food service (restaurants, bakeries, butchers, and other food service businesses) industries.
This is not a first-come, first-serve fund. All applications will be equitably vetted and considered based on the following characteristics:
- Eligibility based on industry
- Longevity in business
- Long-term sustainability
- Historic profitability
- Local economic and community impact of business
- Location of business in Lancaster City
- Impact on the streetscape of Lancaster City
- Number of employees
- Severity of current need
*The Review Committee reserves the right to add further priorities or change eligibility criteria based upon applicant pool.
|Eligibility||•We encourage all applicants to consider the best solution for their business based upon cash needs and ability to take on more debt.
• Businesses between $500,001 - $2 million in annual revenue are eligible to apply for a loan.
• Owners of multiple businesses can only apply for funding for ONE of their businesses.
• Business must operate within Lancaster City.
*Please note that you are still eligible to apply if you received funds through the SBA Paycheck Protection Program or Economic Injury Disaster Loan program.
LOAN PROGRAM DETAILS
We encourage all applicants to consider the best solution for their businesses based upon cash needs and ability to take on more debt. Owners of multiple businesses can only apply for funding for ONE of their businesses.
|Relief Program:||Eligible Businesses:||Amount Available per Business:||What you'll need to apply:|
|Small Business Loan ||Food service, restaurant, barbershop, salon, and arts/entertainment businesses with annual revenue up to $2 Million||Up to $40,000 loan; final amount determined by the review committee||- Entire business federal tax return – 2018, 2019, 2020. Tax extension document must be provided If 2020 was not filed as of the time of the application.
- Most recent 2021 financial statement
- Entire personal federal tax return – 2018, 2019, 2020 for owners of 20% or more. Tax extension document must be provided If 2020 was not filed as of the time of the application.
- A description of the impact of COVID-19 on your business, and your recovery plan.
- Completion of online loan application form.
- Online personal financial statement form for 20% or more owners
- Collateral may be requested on some loans
*Additional documents will be required upon request
Applications for the loan portion of the program will be open from June 14th (9 a.m.) to June 25th (11:59 p.m.). The application will only be available on this website.
This is NOT a first-come, first-served fund. Once the application closes on June 25th (loan portion) respectively, all applications will be equally considered.
We’re committed to a simple, low-barrier process. All cumbersome and non-essential steps have been removed. Again, we encourage all applicants to consider the best solution for their businesses based upon cash needs and ability to take on more debt. Remember, owners of multiple businesses can only apply for funding for ONE of their businesses.
MANAGEMENT & DISTRIBUTION OF FUNDS
ASSETS and Community First Fund—two Lancaster 501(c)(3) nonprofits and certified Community Development Financial Institutions—will be managing and distributing all funding in an equitable, timely, and structured manner.
Loan Funding Timetable
- June 14 — Application opens (9 a.m.)
- June 25 — Application closes (11:59 p.m.)
- Loans take up to 4 weeks for approval once all needed documents are received
- The loan closing process typically takes 6 weeks
- Funds are received within 24 hours of loan closing
FUNDING AND PROGRAM PARTNERS
The approximately $843,200 available in the Emergency Fund has been generously contributed by the following entities:
- Process & Eligibility Fact Sheet: English | Español
- FAQ: English | Español
- First Round Summary Report: English
- Additional Questions?