$1M loan fund aims to aid affected businesses
Merrimack Valley business owners affected by gas explosions can now apply for a loan through a $1 million emergency business fund.
The fund, which targets businesses in Lawrence, Andover and North Andover that have been directly impacted by the recent natural gas tragedy, is being offered with no payments or interest for six months. It was created in a collective effort with state and local lenders along with Gov. Charlie Baker and Lawrence Mayor Daniel Rivera.
“After spending time with impacted business owners, we came up with this fund as a critical tool to help get folks back on their feet in the wake of the gas explosions,” said Baker. “Local businesses are the bedrock of our economy and are in dire need of solutions to make sure they can stay in business and continue to provide good-paying jobs, and we are grateful for the regional lenders that have come together to support this important effort.”
Businesses can apply for up to a $50,000 loan, and there is no minimum loan amount.
Business owners who wish to apply must include a copy of claims filed with Columbia Gas along with how they intend on using the funds.
A $250,000 loan loss reserve for the emergency fund was also set up by Columbia Gas.
“Businesses in Lawrence, Andover and North Andover find themselves in a situation they did not create but nonetheless are victims of,” said Rivera. “With this fund being created, we don’t intend to solve all of their problems, but we hope this provides some much-needed relief.”
Mass Growth Capital provided half of the emergency fund, while the other half was covered by the Lawrence Venture Loan fund.
“We are proud to contribute to the recovery of the small businesses of Lawrence, Andover and North Andover,” said Mass Growth Capital Corp. President Larry Andrews.
“This is a unique opportunity to bring together 10 financial institutions, historically competitors, but are working together as collaborators with a common cause,” said Lawrence Partnership Executive Director Derek Mitchell.
The fund will open Monday, and applications are expected to be processed within two to 48 hours of submission. Mill Cities Community Investments will receive all applications, which will be processed internally.
Many Merrimack Valley residents and business owners are still without gas.
Service is expected to be restored by Nov. 19.