Norwalk expands Small Business Loan Program

NORWALK - Norwalk City Council unanimously voted to expand its Small Business Loan Program on Tuesday, extending its reach beyond overdue rent.

The Small Business Loan Program was passed by the city on May 19, made possible through the CARES Act which brought $747,572 in CDBG-CV funds. These funds are limited to the prevention, preparation, and response of COVID-19.

Up until now, Norwalk has used the Small Business Loan Program to assist with past-due rent payments, up to a maximum loan amount of $10,000.

To date, the city has had 56 applications for the program, approving 15 and signing loan documents with six businesses.

With Tuesday’s revision, the program now allows for aid for businesses who may have fallen up to three months behind on utility payments, assistance with the purchase of supplies and materials associated with the prevention of the spread of COVID-19, and assistance with costs associated with the construction of boundaries necessary to operate under current health department guidelines.

In addition, the maximum loan amount was increased to $35,000.

The city also anticipates allocating additional CARES funds to assist private, for-profit entities to avoid job loss due to business closures from social distancing.