To help struggling local businesses during this unprecedented time, the City of Tempe and Desert Financial Credit Union have developed a first of its kind program for Tempe-based companies, creating the $1 million Tempe Small Business Emergency Loan Program.
Tempe businesses that employ between 5 and 50 people may be eligible for microloans of between $5,000 and $20,000. The intent is to help local companies overcome the financial challenges that coronavirus (COVID-19) has caused.
The Tempe Small Business Emergency Loan Program could serve as many as 200 eligible companies. Loans will be awarded on a first-come, first-serve basis to qualified applicants. The first payment for 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 total guaranteed amount is loaned, whichever comes first. Businesses can get started by phone or online: 602-335-6318 or www.desertfinancial.com/TempeLoanProgram.
For additional services or assistance, reach out to Jill Buschbacher, Tempe Economic Development Program Manager.
Lending criteria includes:
· Applicant is a sole proprietorship, a partnership, limited liability company, corporation, or other form of business enterprise, operating within the city of Tempe.
· Applicant owns and operates no more than three separate locations and must be in business in Tempe for more than two years.
· 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.
· Applicant must have a FICO score of 640 or better.
· Applicant is not delinquent on any state, federal, or local taxes.
· Applicant’s business operations have been negatively affected by the COVID-19 pandemic and/or resulting government restrictions.
· Applicant agrees to use loan proceeds to offset the negative impact of the COVID-19 pandemic or resulting restrictions on applicant’s business.
· Applicant is solely responsible for understanding the legal implications of securing a loan under the program, including but not limited to the effect of any loan on applicant’s eligibility for any other loan, grant, or other form of financial assistance, and agrees to hold Desert Financial Credit Union harmless from and against any such effects.
Loan Application Process:
· Complete interest form at Desert Financial Credit Union’s website or call 602-335-6318 to speak with a program representative to determine eligibility.
· Complete program application via phone with Desert Financial Credit Union
· Agree to standard credit check
· Provide a personal guarantee
· Provide information on net business income, number of employees, and any additional documentation requested by Desert Financial Credit Union
· If awarded, establish a business account with Desert Financial Credit Union