Tempe launches emergency small business loan program
To help local businesses struggling during this unprecedented time, the City of Tempe and Desert Financial Credit Union have developed a unique program for Templebased companies, creating the Tempe Small Business Million Dollar Emergency Loan Program.
Tempe businesses that employ between 5 and 50 people may be eligible for microloans ranging from $ 5,000 to $ 20,000. The intention is to help local businesses overcome the financial challenges caused by the coronavirus (COVID-19).
Tempe’s emergency small business loan program could serve up to 200 eligible businesses. Loans will be granted on a first come, first served basis to qualified applicants. The first installment of these loans is deferred for 90 days to help businesses get back on their feet.
The program will end either within 3 months or until the full guaranteed amount is loaned, whichever comes first. Businesses can start by phone or online: 602-335-6318 or www.desertfinancial.com/TempeLoanProgram.
For additional service or support, contact Jill buschbacher, manager of Tempe’s economic development program.
The loan criteria include:
The applicant is a sole proprietorship, partnership, limited liability company, partnership or other form of commercial enterprise, operating in the city of Tempe.
· The applicant owns and operates no more than three separate locations and must be in business in Tempe for more than two years.
· The applicant employs between 5 and 50 full-time equivalent employees, as of March 19, 2020. Two part-time employees can count as one full-time employee.
· The candidate must have a FICO score of 640 or better.
· The applicant is not in default of any state, federal or local tax.
The Applicant’s business operations have been adversely affected by the COVID-19 pandemic and / or resulting government restrictions.
The applicant agrees to use the proceeds of the loan to offset the negative impact of the COVID-19 pandemic or the resulting restrictions on the applicant’s activities.
The applicant is solely responsible for understanding the legal implications of obtaining a loan under the program, including, but not limited to, the effect of any loan on the applicant’s eligibility for any other loan, grant or other form of financial assistance, and agrees to hold Desert Financial Credit Union free from and against such effects.
Loan application process:
Fill out the interest form at Desert Financial Credit Union website or call 602-335-6318 to speak with a program representative to determine eligibility.
Complete program request by phone with Desert Financial Credit Union
Accept standard credit check
Provide a personal guarantee
Provide information on the company’s net income, number of employees and any additional documents requested by Desert Financial Credit Union
· If awarded, set up a business account with Desert Financial Credit Union