DeKalb County's $15 million loan program to help small businesses impacted by the COVID-19 pandemic has only closed and funded 136 loans totalling $3.384 million, county commissioners were told Tuesday.
Another $1.757 million in loans have been approved, but have not yet closed. Including pending and incomplete applications that may not be approved, the program has offered $10.287 million in loans, according to a report presented to the Board of Commissioners.
The county launched the loan program this summer, using some of the $125 million the county received in Covid-19 funding from the federal government six months ago. The Better Business Loan Program was developed by DeKalb County CEO Michael Thurmond’s administration, in cooperation with the Small Business Subcommittee of the DeKalb COVID-19 Strategic Task Force, which is chaired by Commissioner Steve Bradshaw.
Forgiveness of the loans requires participants to receive business education offered by Georgia Piedmont Technical College. "116 small business owners have been approved to participate," the report said.
"Many of our minority business may not have created the basic fundamental organizational structure needed to qualify even for a progam such as this. That's the real challenge for community-based businesses. Sometimes they've never gotten a business license," Thurmond said. "The thinking is those businesses are businesses we can scale up."
Citizens Trust Bank, which was selected to administer and service $10 million of the loan proceeds, estimates it will use $6.1 million in funding, commissoners were told. Small business owners were permitted to borrow up to $40,000, but were required to apply between Aug. 27 and Sept. 7.
Commissioner Kathy Gannon asked if the remaining $5 million could be distributed through another bank.
"Other banks have been reluctant to become partners in this type of endeavor," Thurmond said. He said banks are still waiting for guidance from the federal government on forgiveness of Paycheck Protection Program loans made earlier this year.
Thurmond told commissioners they could vote to reopen the loan program to applications. He said his administration would present a proposal to commissioners next week.
DeKalb County Chief Operating Officer Zach Williams said he expects all of the approved loans to be disbursed by December.
"I would not like to see one penny go back to the federal government," said Commissioner Mereda Davis Johnson.
