City council creates new loan program
By Wesley Gardner
The Lockhart City Council on Tuesday voted to approve a new economic recovery loan program aimed at helping small businesses throughout the city affected by the spread of COVID-19.
According to Lockhart Economic Development Corporation Director Mike Kamerlander, the COVID-19 Economic Recovery Loan Program will provide one-time loans to affected and eligible businesses that are intended to help the company survive until a larger loan can be secured.
Kamerlander noted the city will provide loans in the amount of $5,000, with a possible $2,500 added depending on the needs of the business. If the business is still operating – i.e. restaurants – and still have personnel costs, it would be eligible for the additional $2,500.
The loans will incur no interest and can be paid off on a 36-month repayment schedule.
According to the application, eligibility requirements include that the business be located within Lockhart city limits and are in compliance with all zoning and land-use ordinances. The applicant must be current on all property and sales taxes and must submit a balance sheet and profit-and-loss statements for the previous six months.
Kamerlander said there were several businesses deemed essential that did not qualify, though the list was not as extensive as the list of businesses deemed essential by Gov. Greg Abbott. Nonqualifying businesses include grocery stores, big box stores, farmer’s and food markets, liquor, wine and beer stores, construction and real estate development businesses, automotive sales, banks and lending institutions, gas stations and convenience stores, nonprofits, medical and healthcare providers and related vendors, mechanics and auto repair shows, and plumbers, HVAC technicians and electricians.
According to Kamerlander, the program is being paid for by transferring $235,000 from the city’s Economic Development Loan Commission, which would then be dissolved.
For more information or to view an application, visit the city’s or the EDC’s website.