For Immediate Release
April 30, 2013
For More Information Contact:
Mayor's Press Office
Mayor Thomas M. Menino today announced a package of emergency funding resources now available to help impacted businesses recover in the aftermath of the Patriots’ Day bombings.
“We have been hearing that some businesses in the impact zone of the Marathon bombings need some help with cash flow issues in the wake of the Patriots’ Day tragedy. They are telling us that they need quick assistance with one-time expenses like making payroll, rent, or other immediate bills,” Mayor Menino said. “Our goal was to find alternative funding options for businesses to help them through these challenges, and I am proud that we have achieved that.”
The Small Business Administration (SBA) has announced that low-interest economic injury disaster loans are now available to small businesses in the affected Marathon bombing area. At Mayor Menino’s request, the SBA will be dispatching staff to a Business Recovery Center to be opened in Boston to assist businesses in applying for these low-interest loans. The Business Recovery Center will be located at the Boston Public Library’s Central Library in Copley Square, located at 700 Boylston Street, and will open starting tomorrow, Wednesday, May 1st.
“The SBA is committed to helping Marathon impacted businesses overcome their economic injury by offering loans at low rates and generous terms,” said SBA District Director Robert Nelson. “We are proud to be on site in Boston, on Boylston Street in the heart of the impacted area, to help businesses apply for this important funding.”
The hours for this week will be: Wednesday and Thursday, 9:00 a.m. – 6:00 p.m.; Friday, 9:00 a.m. – 5:00 p.m.; and Saturday, 10:00 a.m. – 2:00 p.m. Opening hours for next week will be Monday – Thursday, 9:00 a.m. – 6:00 p.m.
Eligible businesses may qualify for loans of up to $2 million, at rates of 2.875 percent for non-profit organizations and 4 percent for small businesses, with terms up to 30 years. The SBA will work with businesses in the impacted area to determine their eligibility for these loans. Businesses may also apply for loans on line at https://disasterloan.sba.gov/ela, or by calling (800) 659-2955.
In addition, at the City’s request, Citizens Bank has stepped forward to offer two products to qualified businesses in the Marathon bombing impact area that are unable to get assistance through their existing banks: a Business Banking Flex Loan and a Business Credit Card. The Flex Loan will have expedited application processing, terms of up to 60 months, and a one percent APR for the first six months of the loan. The business credit card will offer a zero percent APR on purchases for six months, with expedited application processing and overnight delivery. Both products will be offered through May 31, 2013.
“We thank Mayor Menino for his leadership throughout the aftermath of this terrible event for our city, and are committed to do what we can to help local businesses recover from the economic impact,” said Jerry Sargent, President, Citizens Bank and RBS Citizens, Massachusetts. “We very much subscribe to the notion of ‘Boston Strong’ and are pleased to participate in this effort at the mayor’s request.”
Eligible businesses in the impacted area can meet with representatives of Citizens Bank at the Business Resource Center during its hours this Wednesday, Thursday, and Friday, and afterwards at the Citizens Bank branch at 607 Boylston Street or by calling (866) 438-9222.
The City has been guiding businesses through thinking about additional ways to handle their finances in the weeks following the re-opening of Boylston Street. Although not every suggestion will apply to all businesses, the Office of Business Development recommends that before taking on new debt, businesses first consider the following:
- · Check with your current bank for financing options. An existing relationship with your current financial institution may allow them to be flexible with financing options and products.
- · Consider reaching out to vendors to obtain extended terms on your current billing cycle.
- · Reach out to your property manager to see if they can be flexible on rent payments.
- · Consider accelerating the rate at which you collect on accounts receivable as a way to increase cash flow.