Decatur’s city commission recently approved creating an emergency small business loan program to help cushion the devastating fallout from COVID-19. Although the city’s seen an influx of national retailers in recent years, particularly within the new mixed-use developments, it’s still home to dozens of independent restaurants and businesses.
“We don’t have a chain-store environment here and we’re not a mall,” said Deputy City Manager Hugh Saxon, the city’s most senior staffer whose tenure dates back to the mid 1970s. “The locally-owned businesses gives Decatur its character and we’ve spent 20 years and more creating that identity. We’re all concerned, the commission and staff, about the impact on local businesses.”
Decatur officials estimate there are about 100 restaurants within city limits. An “Open For Business” page on the city’s website lists 37 restaurants (as of March 31) doing some combination takeout, delivery and curbside service. Which means that more than 60 percent are closed entirely.
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Saxon estimates there are an additional 100 small retailers, some open, some conducting online business and some closed altogether.
The city’s goal in the proposed loan program is to lend out a half million dollars total, with $400,000 of that coming from the city’s general fund and the remaining $100,000 raised by the Downtown Development Authority.
The specific contours of the program, including criteria for screening and credit, are still being deliberated. But generally the program would be geared towards local businesses with 25 or fewer full-time (or full-time equivalent) employees. No interest or nominal interest loans would stretch from 36 to 60 months, and the average loan amount is $10,000 to $15,000, with a maximum loan amount of $25,000.
Saxon said he hopes the program’s up and running in 45 to 60 days.
“Hopefully this will be a revolving fund and we’ll get paid back the money we’ve invested,” Saxon said. “There’s no question this is a whole lot riskier budgeting than what we’re used too, but this is a risky period.”
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