APPLICATIONS NOW OPEN
Grant applications will be accepted from Monday, June 19, 2023 until funding is exhausted
Please email the application (included below) with any required documents to Jared Mast
*See guidelines included below for complete details regarding this program
Loan Amount: Not to exceed $10,000. Due to lack of available funds, loans may not be approved at 100% of the requested amount.
Interest Rate: Zero Percent (0%). In the instance of default on the loan, GEDP reserves the right to introduce a default rate of interest up to the published Wall Street Journal Prime Rate at the time of notice of default (currently 8.25%).
Term: Loan payments will be deferred for the first six (6) months, following which the principal will amortize over twelve (12) months. Extensions to this amortization may be provided on a case-by-case basis.
Eligible Businesses: Any for-profit business with a principal location in the City of Easton, PA that has been in operation for at least six (6) months. The business must certify that the resources are necessary for the continuing operations of the business located in the City. Eligible applicants must be code compliant and current on all City taxes and utility payments, unless deferments or other accommodations have been provided. Priority will be given to those businesses demonstrating hardship experienced as a result of the pandemic or post pandemic economy.
Hardships may include, but are not limited to:
- Issues experienced as a result of supply chain disruptions
- Staffing scarcity
- Issues resulting from prolonged construction activity in the downtown.
Use of Loan Proceeds: The subject grant must be used for working capital or a related use for the business located in the City; proceeds are to be used to cover those expenses that the business must incur to maintain continuing operations including, but not limited to:
- Overhead and staff-related expenses (must not be ownership or family relationships to ownership);
- Purchase additional inventory and equipment. The equipment must be necessary for local business operations.
Loan proceeds may be used to pay down existing business loans (must be able to demonstrate that the proceeds were used to fund Easton operations), but cannot be used to pay off personal obligations of the owners.
Collateral / Security: No collateral or personal guarantee(s) will be required for the loan, but owners of 20% or more of the business will be required to be co-borrowers. In addition, direct business affiliates may be required to serve as co-borrowers.
Application Review: Applications will be reviewed by the Greater Easton Development Partnership Finance Committee. Applicants will be notified of the Committee’s decision on their loan via email within thirty (30) days of submitting a complete application. Priority will be given to those businesses which have not received other forms of COVID-19 Relief Funding through Greater Easton Development Partnership or the Redevelopment Authority of Easton. GEDP may request additional or updated information prior to approving the loan.
Loan Funding / Closing: Upon approval applicants, will receive notification via email along with a draft loan agreement and note. These documents are non-negotiable and will need to be executed prior to arranging for funding of the loan.
- Upon receipt of the executed documents from the applicant, a check will be drafted for the approved loan amount and sent to the business address identified in the application within ten (10) business days.
Contact: Any questions related to this program or regarding the status of your application should be directed to Jared Mast