In partnership with Tulsa Economic Development Corporation (TEDC), the City of Tulsa is dedicating $1.1 million in funds for zero interest loans to provide financial assistance to small business owners and entrepreneurs affected by COVID-19.
TEDC will begin accepting loan applications from local businesses immediately..
To qualify as a small business, applicants must have fewer than 50 full-time equivalent (FTE) employees, have 2019 revenues that did not exceed $5,000,000 and have experienced a decrease in revenue of at least 25 percent between February and March 2020 due to COVID-19.
Apply on the Tulsa Responds website.
When can I apply for this program?
TEDC will begin accepting loan applications immediately. Loans typically take between 1-2 weeks to process and are dependent upon the timely provision of borrower information needed for the underwriting process.
How do I apply for this program?
Businesses and entrepreneurs interested in applying for the relief program can apply for a loan on Tulsa Economic Development Corporation’s website. Interested businesses and entrepreneurs are encouraged to contact TEDC prior to submitting an application in order to identify whether they are eligible for other programs and grant or loan opportunities.
What businesses are eligible for the Business Resilience and Recovery Fund?
Does this program extend to other municipalities?
No. This program is specifically for Tulsa businesses.
What businesses are not eligible?
Agricultural enterprises, religious and charitable organizations, and businesses that derive more than one-third of their annual revenue from legal gambling activities are not eligible for the program.
What can the loans be used for?
Businesses and entrepreneurs can use the funds for a number of costs, including but not limited to payroll, insurance premiums, a bridge loan, etc.
How long do I have to repay?
Businesses will have three to five years to repay the loan amount. Repayment periods will be dependent upon business need and determined by TEDC upon application review.
What is the interest rate?
The loans will be made at zero interest.
When would principal payments begin?
Borrowers will not be required to make payments for the first three months of the loan term. Can I apply for this loan and federal aid available through the CARES Act?
Yes, you can apply for both local and federal aid.
How is this loan different from federal aid offered by the Small Business Administration (SBA)?
The City of Tulsa has offered the Business Resilience and Recovery Fund to fill in gaps for federal aid sources – to provide aid more quickly for immediate working capital and payroll needs and to support firms that may not meet SBA qualifications.
How is this loan different from other sources of aid?
The City of Tulsa has offered the Business Recovery Fund to fill in gaps for federal and other aid sources – to provide aid more quickly for immediate working capital and payroll needs and to support firms that may not meet other qualifications.
What federal aid is available to small businesses in Tulsa?
As a part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), the Small Business Administration will receive funding of $700 billion across two different loan programs for small businesses negatively affected by COVID-19. Borrowers cannot receive both sets of loans.
Paycheck Protection Program Loans (PPPL) provide one-time loans of up to $10 million (with the limit determined by a multiple of monthly payroll costs) through June 30, 2020. These funds can be used for operational costs, including payroll, rent, health benefits, and insurance premiums, among others. The interest rate on PPPL loans is 4 percent, and the term of the loan is up to 10 years. Eligible applicants are limited to “small business concerns” as currently defined by the SBA to include any business, nonprofit (limited to Section 501(c)(3)) organization, or veterans’ organization, employing no more than the greater of 500 employees or the number of employees for each industry as determined by the Administration. Significant parts of the PPPL funds that borrowers spend during the 8-week period after the loan origination date on qualified costs (including payroll, rent, utilities, and interest on other debt including mortgages) may be forgiven if the employer maintains its payroll during the covered period. More information about these loans is available from Tulsa Economic Development Corporation (TEDC)
Economic Injury Disaster Loans (EIDL) provide loans of up to $2 million (with the limit determined by industry and employment) through December 31, 2020. These funds can be used for working capital for expenses that could have been paid had the disaster not occurred. The interest rate on EIDL loans is 2.75 percent for nonprofits and 3.75 percent for small businesses, and the term of the loan is 30 years. Small businesses and nonprofits who have been negatively affected by COVID-19 are eligible to apply. To qualify, borrowers must demonstrate creditworthiness and repayment ability. Borrowers can apply for these loans online.