GALION — Galion City Council approved an agreement with the Galion Port Authority during its May 26 meeting to launch a business loan program. The Port Authority will administer the program to assist local businesses as they reopen.
Loan funds may be used by existing local businesses for expenses incurred as a result of the COVID-19 health emergency, or for costs related to reopening and meeting new sanitation guidelines.
A total of $190,000 in funding is available, which was previously authorized by city council. The loan cap is $5,000 per business. No repayments are necessary for the first 12 months after the loan is issued.
“A lot of work was done since the last meeting. The Port agreed to these terms and is ready to administer the program,” Mayor Tom O’Leary said.
Under the agreement, the Port will charge an administration fee of $15,000. The program will terminate 12 months after the funds are exhausted, unless both parties agree to extend it.
Council passed the legislation with a unanimous vote.
“Our responsibility as city officials is to do everything we can to ensure as positive of a startup as possible. If we can help 30 or 40 businesses to have a smoother reopening, then this program will be a great success,” O’Leary commented.
The Port Authority is finalizing the application, which will be made public as soon as possible.