Forgivable, No-Interest Loans for Small Businesses Application

As part of its gap funding response to the COVID-19 pandemic, the City of Webster City is offering forgivable, no-interest loans for eligible small businesses and self-employed workers impacted by the pandemic.

Eligible borrowers must have had either 20 or fewer employees AND $500k or less in annual revenue. Loans will be available for $2,500 or $5,000, have deferred payments for 12 months, and be 100% forgivable if the business continues to operate in Webster City in good regulatory standing.

Applications are due by Thursday, APRIL 30, 2020, 12:00 pm. Applications submitted after that point will not be considered.

For questions about eligibility or the application, please contact Lindsay Henderson (515) 835-2210 or by email lhenderson@webstercity.com.

ELIGIBLE APPLICANTS

Business category must be referenced in the Governor Reynolds’s Proclamation.
Click here

Businesses must also:
• Have 20 or fewer employees AND $500k or less in annual revenue,
• Self-employed workers are eligible and
• In good regulatory standing with the City

Self-employed workers and nonprofits with paid staff and directors are eligible to apply.

Please note: Immigration status does not impact eligibility.

If you believe your business should qualify for a forgivable loan but falls outside the employee and annual revenue guidelines, please contact Lindsay Henderson for consultation. (515) 835-2210, lhenderson@webstercity.com.

I have a mobile business and/or I work from my home, am I eligible?
Yes. Businesses or self-employed workers without a separate business address should enter their home address.

What businesses are not eligible?
Businesses are not eligible if their primary services are any of the following:
• registered lobbying
• multi-level marketing
• billboards
• renting commercial or residential property

How much is the loan for?
A fixed amount of $2,500 or $5,000, depending on need resulting from the COVID-19 emergency.

Can I apply for this in addition to State and Federal funding?
Yes. Businesses can apply for this loan in addition to any Federal or State funding, such as an SBA or DEED loan.

How do I apply?
Applications are due by 12:00 pm on Thursday, April 30, 2020. Complete the online application, or download the fillable PDF. Printed copies must be placed in the City’s utility dropbox located on the west side of City Hall at 400 2nd Street by the 12:00 pm deadline on April 30th.

What documents do I need?
To apply, you will need to upload
• Documentation of business revenue from 2019 (or the business’ most recent fiscal year if different), e.g. tax return, financial statements, reports, or any such records that can verify business revenue.
• Documentation of payroll and employee count, if any, as of March 1, 2020.

Will the City look at my credit?
No. The City will not be looking at credit scores, and no collateral is required.

What can I use the money for?
Funds can be used for:
• Payroll and employee benefits
• Rent or mortgage payments
• Accounts payable and payments due to supply chain
• And other critical working capital needs

Will I need to make payments?
No. Loans have deferred payments for 12 months, and be 100% forgivable if the business continues to operate in Webster City in good regulatory standing.

How will I know if my loan will be forgiven?
The loans are 100% forgivable after 12 months if the business continues to operate in Webster City and remains in good regulatory standing.

What if I have questions about the application?
If you have questions about the application, contact Lindsay Henderson (515)835-221. lhenderson@webstercity.com

PLEASE NOTE: that you will need to fill out and submit the application in one sitting. There is no save and return option. You will need to upload some supporting documentation to submit the application. We encourage you to have those materials ready before you begin. Please read the full application first.

This application must be completed and submitted by someone who has legal authority to contract on behalf of the business.

VERIFICATION OF ELIGIBILITY

Applicants must meet all of the following criteria as of March 1, 2020 to be eligible for this loan. A business owner’s immigration status does not impact eligibility.

ELIGIBLE BUSINESS LOCATION

Is the Applicant’s business located in Webster City?

Yes
No

Businesses or self-employed workers without a separate business address should use their home address.

Was your business listed in the proclamation and/or its extension?

Yes
No

Does the Applicant meet BOTH of the following size or revenue criteria?*

Yes
No

• 20 or fewer employees as of March 1, 2020
• $500k or less in annual revenue for 2019 (or the business’ most recent fiscal year if different)
(Not-for-profit organizations are eligible to apply.)

Is the Applicant in compliance with City ordinances?*

Yes
No

i.e. there are no adverse actions or open violations.

Is the subject matter of the applicant’s business something other than gambling, adult entertainment, registered lobbying, multi-level marketing, billboards, or renting commercial or residential property?*

Yes
No

Applicants that answered No to any of the questions above are not eligible for this loan program and should not complete the rest of the application.

Applicant Information

Name*

First Last

Email*

Phone*

Business Information

Legal Business Name*

Business Address*

Street Address Address Line 2 City State ZIP Code

Website (optional)

Business Ownership and Information

Provide full name, home address, and ownership % for each owner that owns more than 20% of the business.

Owner #1

Name*

First Last

Home Address*

Street Address Address Line 2 City State ZIP Code

% Ownership*

Owner #2

Name

First Last

Home Address

Street Address Address Line 2 City State ZIP Code

% Ownership

Owner #3

Name

First Last

Home Address

Street Address Address Line 2 City State ZIP Code

% Ownership

Owner #4

Name

First Last

Home Address

Street Address Address Line 2 City State ZIP Code

% Ownership

Legal Structure of Business (Select):*

If Other was selected for Legal Structure of Business, please specify.

Primary Business or Industry (Select):*

If Other was selected for Primary Business/Industry, please specify:

Years in business*

Gross revenue (income) in 2019*

Or the business’ most recent fiscal year if different.

Estimated revenue lost to-date due to COVID-19*

COVID-19 Impact

Please describe the direct and indirect ways that COVID-19 has impacted your revenue to-date and projected revenue, including how you arrived at your answer to the previous question.*

Employment

Enter number of all W2 employees:

Full-time (on March 1, 2020)*

Part-time (on March 1, 2020)*

Full-time (Current)*

Part-time (Current)*

LOAN USES

Loan proceeds must be used for business purposes. How you will use the loan for your business?*

LOAN DOCUMENTS

Please upload the following: 1) Documentation of business revenue from 2019 (or the business’ most recent fiscal year if different), e.g. tax return, financial statements, reports, or any such records that can verify business revenue. 2) Documentation of payroll and employee count, if any, as of March 1, 2020.*

Drop files here or

Max. file size: 64 MB.

LOAN REQUIREMENTS

The City wants to have a continued relationship with the businesses it assists through this program and help them navigate the recovery from the pandemic. To that end, applicants that receive a loan will be required to submit follow up information to the City of Webster City on a quarterly basis for the term of the loan. Such information will include, but is not limited to, the status of the business, the business location, regulatory issues the business faces, and any business coaching or technical assistance needs of the business. The City will use this information to connect the businesses to relevant resources. Borrowers will submit the information via an online portal similar to the application form. Before the end of the twelve-month deferral period, borrowers will submit a final report. The City will use the information in that report, and any follow up information requested of the borrower, to determine whether the borrower meets the criteria for loan forgiveness. The City will forgive the loan if the business continues to operate in Webster City in good standing with City ordinances and regulations. Those borrowers that do not meet the forgiveness criteria will need to repay the loan at the end of the twelve-month period.

Will you agree to these requirements if selected for a loan?*

Yes
No

REVIEW, SELECTION & CLOSING PROCESS

Applications are due by noon on Thursday, April 30th, 2020.
The Council appointed review committee will review applications for consistency with the eligibility criteria. Staff will also determine the size of the loan amount, $2,500 or $5,000, depending on the economic injury resulting from the COVID-19 emergency.
City staff will notify approved applicants by email or phone.

DATA PRIVACY ACKNOWLEDGEMENT

This data is being requested from you to determine if you are eligible for assistance from the City of Webster City. You are not required to provide the requested information, but failure to do so may result in the City’s inability to determine your eligibility for assistance and the denial of your application.

BUSINESS CERTIFICATION

This information and the information provided on all accompanying documents is provided for the purpose of obtaining a loan for the Applicant. Applicant acknowledges that representations made in this application will be relied on by the City in its decision to grant such loan. The City is authorized to make all inquiries it deems necessary to verify the accuracy of the information contained herein. The Applicant will promptly notify the City of any subsequent changes which would affect the accuracy of this information and the information provided on all accompanying documents. The Applicant understands that it is a crime to make a false representation as to their or their company’s financial ability for the purpose of securing a loan. The Applicant declares under penalty of perjury that all information provided herein and on accompanying documents is true in every detail and accurately represents the financial condition of the applicant and the Business on the date given below, and that the Applicant has authorization to sign this form. By typing anything in the text box below, the Applicant agrees that they are electronically signing this application. The Applicant understands and agrees that their electronic signature is the legal equivalent of a manual signature and that the City may rely on it as such in connection with any and all agreements that the Applicant or the Business may enter into with respect to this application.

Name of Authorized Business Representative*

Title of Authorized Business Representative*

Date*

Send me a copy of my responses.*

Opportunity Awaits...

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Forgivable, No-Interest Loans for Small Businesses Application