A new partnership puts United Way in a key role helping ALICE workers and their employers in the City of Kalamazoo affected by the COVID-19 pandemic.

With $2 million in support from the Foundation For Excellence, United Way launched the Kalamazoo Small Business Loan Fund. The fund will provide low-interest loans between $5,000 and $50,000 for small businesses in the City of Kalamazoo that face significant financial hardship due to the outbreak.

The Kalamazoo City Commission unanimously approved the fund at a special online meeting on March 31.

“This program aims to offer immediate life-lines to small businesses and their workers, especially those who are Asset Limited, Income Constrained, Employed (ALICE),” said Chris Sargent, President & CEO of United Way BCKR.

These loans provide a bridge until the businesses can gain access to other loans and relief coming from state and federal sources, Sargent added.

Eligible businesses must qualify for aid under Executive Order 2020-21, be located in the City of Kalamazoo, have 50 employees or fewer and revenues of $2.5 million or less, must provide support to impacted employee(s), and must be able to demonstrate an income loss due to the COVID-19 outbreak. Loans are for 36 months, with no interest or payments during the first six months, and 1% annual interest applied over the remaining 30 months.

Sargent applauded the partnership of the City and economic and community development organizations in Kalamazoo for making the fund possible. Likewise, Foundation For Excellence Manager Steve Brown hailed United Way’s role, telling the City Commission, “We’re blown away by United Way’s capacity to respond.”

Applications will be accepted beginning April 1. Details and a link to the application form are available online at changethestory.org/kalamazoo-small-business.