Saco launches relief program for small businesses

SACO — The city has launched an emergency relief loan program for small businesses impacted by the COVID-19 virus.

Mayor William Doyle announced the new program at Tuesday night’s City Council meeting,

Saco businesses and non-profit agencies with 500 or fewer employees can apply for a $10,000 loan. Loan payments will be deferred six month and 50 percent of the loan will be forgiven after 5 years, said Doyle.

“To help support businesses as quickly as possible, the review and application process has been streamlined and all payments will be deferred for six months,” he said.

Funding for the program will come from the City of Saco’s Tax Increment Financing District revenues, and the program will be administered by the Southern Maine Finance Agency, said Doyle.

Eligible uses for the loan fund include physical improvements and renovations, furniture, machinery and equipment, and related processional services including marketing, architectural and engineering.

Ineligible uses include real estate acquisition, refinancing of existing debt, sweat equity or payment of the applicant’s own labor, and reimbursement of any project costs prior to approval of the loan.

Emily Roy, director of communications, said that as of Wednesday morning, there had been 12 inquiries from non-profits and businesses like retail, light manufacturing, photography and restaurants.

For more information, go to sacomaine.org/loans.