Together, Market Lubbock, Inc., the Lubbock Economic Development Alliance and South Plains Association of Governments (SPAG) partnered to provide $2 million in support for Lubbock’s small businesses following the COVID-19 pandemic. These funds are allocated to local businesses experiencing difficult financial times and offer support for a critical component of Lubbock’s economy. We are committed to #SupportLubbock and the business community.
The requirements needed for consideration to acquire the funds include:
- Businesses with two years of tax returns or entity documents
- Minimum gross revenues meets $100,000 in 2019, with the maximum set at $5 million in gross revenues
- Businesses must reside within the city limits of Lubbock
The Support Lubbock Fund allows for working capital to provide assistance for costs associated with overhead operations, payroll, rent, short-term uses of cash for business operations, utilities and inventory or raw material.
Collateral options for those interested in applying cover businesses that currently have no collateral, a lien on real estate or have filed for a uniform commercial code-1 on equipment, inventory, accounts receivable, etc. No credit elsewhere or personal guarantee is required. However, while proof of other funding awarded is not mandatory when applying, any and all additional resources the business in question has acquired is strongly encouraged and will be asked to be provided.
The funds are on a first come, first served basis for businesses. All allocations begin as a loan with a 4 percent interest rate and a maximum 5-year term. However, during the first year, the company may pay only the interest due on the loan. Additionally, the business has the potential of having a portion of or all of the loan forgiven in the first year depending on certain circumstances.