LAFAYETTE, Ind. (WLFI) -- Lafayette leaders are looking to support small businesses in the new year. The city is giving out $215,000 in federal funds.
It'll go to owners facing hardships caused by Covid-19. This money comes from the city's Community Development Block Grant. The application process opens next Tuesday, Dec. 29. Owners will have until Monday, Jan. 4 to apply.
This is the second round of CDBG funding to go out. The first round was $400,000 and distributed to 45 local businesses back in April. Dennis Carson, Lafayette's economic development director is encouraging businesses to apply and take advantage of these federal dollars.
"People are hurting," said Carson. "The business owners themselves and their employees and such so, we want to be able to assist in any way we can."
Owners can receive up to $10,000 for their business. Carson said this second round of funding came just in time. The months after this particular holiday season tend to be challenging for businesses on a normal year, in this pandemic, that challenge has only amplified.
"We hope that's another bridge for them to help them through what's going to be a pretty tough time particularly for January and February and winter as we go through 2021," said Carson.
Businesses located in the red zones on this map are the ones eligible for these funds.
For businesses to be eligible, the following criteria must be met:
Money is to be used for working capital only.
Assistance can be used for employee payroll (business must commit to retaining current staff
for a four (4) month period after receiving the assistance), facility rent or mortgage expense
(lease or mortgage documentation must be provided) and/or utility costs (copies of utility bills
in the business name must be provided).
Up to $10,000.
The term of the assistance for eligible expenses is eight (8) months from April 1, 2020, through
November 30, 2020, and is forgivable if the above criteria are met. The business will be
required to show proof of payment of the above expenses claimed during the period.
Eligible businesses will certify that they have not received previous funding under this program
from the City of Lafayette.
The application can be found and submitted on the City of Lafayette Action Center on or after
8:00 am on December 29, 2020 through close of business at 5:00 pm on January 4, 2021, or
until funds are exhausted. Send your completed application through the Action Center or to
City of Lafayette, c/o Economic Development Department, 515 Columbia Street, Lafayette, IN,
Ineligible businesses include those engaged in illegal activities, loan packaging, speculation, multi sales distribution, gambling, investment or lending, or where the owner is on parole.
Specific types of businesses not eligible include:
- Real estate investment firms, when the real property will be held for investment purposes as
opposed to loans to otherwise eligible small business concerns for the purpose of occupying
the real estate being acquired.
- Firms involved in speculative activities that develop profits from fluctuations in price rather
than through the normal course of trade, such as wildcatting for oil and dealing in
commodities futures, when not part of the regular activities of the business.
- Dealers of rare coins and stamps are not eligible.
- Firms involved in lending activities, such as banks, finance companies, factors, leasing
companies, insurance companies (not agents), and any other firm whose stock in trade is
- Pyramid sales plans, where a participant's primary incentive is based on the sales made by
an ever-increasing number of participants. Such products as cosmetics, household goods,
and other soft goods lend themselves to this type of business.
LafayetteIN City_Lafayette City_Lafayette lafayette.in.gov
- Firms involved in illegal activities that are against the law in the jurisdiction where the
business is located. Included in these activities are the production, servicing, or distribution of
otherwise legal products that are to be used in connection with an illegal activity, such as
selling drug paraphernalia or operating a motel that permits illegal prostitution.
- Gambling activities, including any business whose principal activity is gambling. While this
precludes loans to racetracks, casinos, and similar enterprises, the rule does not restrict
loans to otherwise eligible businesses, which obtain less than one-third of their annual gross
income from either the sale of official state lottery tickets under a state license or legal
gambling activities licensed and supervised by a state authority.
- Charitable, religious, or other non-profit or eleemosynary institutions, government-owned
corporations, consumer and marketing cooperatives, and churches and organizations
promoting religious objectives are not eligible.
For further information or questions regarding this program, you can contact Carson at email@example.com or 765-807-1090.