Newport News, Hampton launch Peninsula Cares Act Fund
$1.5M revolving loan program open to local businesses
The cities of Hampton and Newport News opened a new low-interest loan program for COVID-affected businesses on Thursday. Known as the Peninsula Cares Act Fund, it will lend a total of $1.5 million in amounts ranging from $7,500 to $375,000.
Eligible businesses can use the funds for purchase and installation of machinery and equipment, building rehabilitation costs, refinancing of certain existing loans, facility remediation and cleanup, gap financing, infrastructure, marketing, working capital and other costs contributing to the value of a project’s fixed assets.
The relief fund, with money provided through a federal CARES Act Recovery Assistance Grant, will be distributed through direct loans with flexible rates and terms. According to the city of Newport News, the fund makes fixed interest loans generally between 0% and 2% (only applicable until all funds have been disbursed or June 30, 2022, whichever occurs first). The maximum term is 10 years for fixed asset loans and four years for working capital loans.