JACKSONVILLE, Fla.—VyStar Credit Union here and the City of Jacksonville have entered into a public-private partnership to support local small businesses affected by the coronavirus.
The $9.1-billion VyStar has set aside $50 million for small business loans, according to the city and the credit union itself.
Under the COVID-19 Small Business Relief & Employee Retention Program, small businesses located in Duval County can apply for loans up to $100,000 at 5.99%. The loan will be interest only during the first year. If the loan application is approved, the first 3,000 loan recipients will get a $1,000 grant from the city.
VyStar is waiving the $250 loan underwriting fee for loans under $5,000. The city will pay the fee for loans above $5,000.
The city will cover 100% of the loan interest payments in the first year. In years two through six, the city will provide grants to cover interest costs, if businesses retain at least 50% of their pre-coronavirus workforce.
Principal Forgiveness
If the grant recipient retains 100% of its pre-coronavirus workforce, the small business will receive principal forgiveness during years two through six of 10% annually, Leggett said.
The city is allocating $9 million from the city’s general fund for the first year of the program. The maximum funding for the program from the city will be $26 million over six years.
The city’s chief administrative officer, Brian Hughes, told the Jacksonville Daily record the city had been exploring various means of providing stimulus, and partnered with the credit union because it lacked the infrastructure to get cash to people quickly.
VyStar noted it had already instituted a relief program of its own prior to the new partnership with the city.