A Dubuque nonprofit announced today that it will make up to $2 million available to small businesses that are struggling to stay afloat during the COVID-19 crisis.
Dubuque Initiatives shared details of the emergency program with the Telegraph Herald before publicly announcing it.
Board members on Friday agreed to distribute “bridge financing” of up to $10,000 per business for Dubuque companies that employ 50 or fewer workers.
“We know there are several businesses struggling financially. The cash has simply dried up,” said board Chairman Kevin Lynch. “This is hopefully going to be a bit of a lifeline for them.”
He emphasized that time is of the essence.
“It needs to happen quickly,” he said. “You need to throw the lifeline before they’ve drowned.”
Businesses located within the City of Dubuque can apply for assistance by calling the COVID-19 helpline at 563-588-3350 starting at 8:30 a.m. Tuesday, April 14. Qualifying businesses will be referred to East Central Intergovernmental Association, which will walk them through the application process.
Many businesses already applied for loans or grants through a variety of state or federal programs, including Iowa’s Small Business Relief Fund and the Small Business Administration’s Payroll Protection Program and Economic Injury Disaster Loan.
Those programs, however, do not have sufficient funds to cover all businesses in need of assistance. Moreover, those that are approved for funding often face significant delays in receiving that financial support.
Those delays can be the difference between life or death for businesses that need to pay employees, landlords or utility companies.
“There’s a gap until the money comes,” said ECIA Executive Director Kelley Deutmeyer. “This will help businesses get through that gap.”
Dubuque Initiatives is a nonprofit that focuses on supporting challenging projects addressing job creation or community revitalization.
Its bridge loans will be available to companies that previously applied for funds through state or SBA programs.
In many cases, businesses have been awarded funding through those programs but haven’t received it. In these instances, selected businesses would be given no-interest loans for 60 days and would retire them once they receive their state or federal funds.
Businesses that apply for state or federal assistance and do not receive it can convert the assistance into a three-year loan.
Deutmeyer noted that ECIA has done business loans for decades and emphasized that the organization is eager to play a role in this effort.
“Our biggest fear is that the businesses that are struggling now end up closing for good,” she said. “We know we need to respond to the needs of our community and our businesses.”
A major emphasis has been placed on a rapid turnaround. Once an application is completed, processing and disbursement of funds are expected to take place within 48 hours.
“We know this cannot get caught up in red tape,” Lynch said. “For this to work, it had to be turned around quickly.”
To ensure an effective rollout, Dubuque Initiatives will be leveraging a small business helpline launched in late March.
Greater Dubuque Development Corp., Northeast Iowa Community College and the local Small Business Development Center started the helpline to guide local businesses throughout the process of acquiring state or federal funds. Now, it also will help these businesses tap into local opportunities.
Kristin Dietzel, GDDC vice president of workforce solutions, said the helpline has received calls from more than 250 businesses. These conversations have provided a window into their current challenges.
“These businesses are fearful, and they are frustrated,” she said. “We want them to know that our community is here to help them.”
