LAFAYETTE — Mayor Tony Roswarski is pleased to announce that additional funding has been made available in the amount of $215,000 from Community Development Block Grants (CDBG) for small businesses impacted by COVID-19. During the first round of funding earlier this year, $400,000 was awarded to 45 small businesses in Lafayette. Applicants who own a small business (Sole Proprietor, Partnership, C-Corp, S-Corp, and LLC) with 25 full-time employees or fewer and located in the City of Lafayette’s qualified low-to-moderate-income census tracts are eligible. Applications will be available starting Tuesday, December 29, 2020, at 8:00 am. To apply, you must NOT have received previous assistance under this program from the City of Lafayette related to the COVID-19 pandemic. For businesses to be eligible, the following criteria must be met:
Money is to be used for working capital only.
Assistance can be used for employee payroll (business must commit to retaining current staff for a four (4) month period after receiving the assistance), facility rent or mortgage expense (lease or mortgage documentation must be provided) and/or utility costs (copies of utility bills in the business name must be provided).
Up to $10,000.
The term of the assistance for eligible expenses is eight (8) months from April 1, 2020 through November 30, 2020 and is forgivable if the above criteria are met. The business will be required to show proof of payment of the above expenses claimed during the period.
Eligible businesses will certify that they have not received previous funding under this program from the City of Lafayette.
The application can be found and submitted on the City of Lafayette Action Center on or after 8:00 am on December 29, 2020 through close of business at 5:00 pm on January 4, 2021, or until funds are exhausted. Send your completed application through the Action Center or to City of Lafayette, c/o Economic Development Department, 515 Columbia Street, Lafayette, IN, 47901.
Ineligible businesses include those engaged in illegal activities, loan packaging, speculation, multi-sales distribution, gambling, investment or lending, or where the owner is on parole.
Specific types of businesses not eligible include:
- Real estate investment firms, when the real property will be held for investment purposes as opposed to loans to otherwise eligible small business concerns for the purpose of occupying the real estate being acquired.
- Firms involved in speculative activities that develop profits from fluctuations in price rather than through the normal course of trade, such as wildcatting for oil and dealing in commodities futures, when not part of the regular activities of the business.
- Dealers of rare coins and stamps are not eligible.
- Firms involved in lending activities, such as banks, finance companies, factors, leasing companies, insurance companies (not agents), and any other firm whose stock in trade is money.
- Pyramid sales plans, where a participant’s primary incentive is based on the sales made by an ever-increasing number of participants. Such products as cosmetics, household goods, and other soft goods lend themselves to this type of business.
- Firms involved in illegal activities that are against the law in the jurisdiction where the business is located. Included in these activities are the production, servicing, or distribution of otherwise legal products that are to be used in connection with an illegal activity, such as selling drug paraphernalia or operating a motel that permits illegal prostitution.
- Gambling activities, including any business whose principal activity is gambling. While this precludes loans to racetracks, casinos, and similar enterprises, the rule does not restrict loans to otherwise eligible businesses, which obtain less than one-third of their annual gross income from either the sale of official state lottery tickets under a state license, or legal gambling activities licensed and supervised by a state authority.
- Charitable, religious, or other non-profit or eleemosynary institutions, government-owned corporations, consumer and marketing cooperatives, and churches and organizations promoting religious objectives are not eligible.
For further information or questions regarding this program, you can contact Dennis Carson, Economic Development Director, City of Lafayette, at email@example.com or 765-807-1090.