TCF, Wayne County Commit $ 6 Million in New Low Interest Small Business Loan Fund
TCF Financial Corp. and Wayne County pledge to invest at least $ 3 million each in a new Wayne County Small Business Low Interest Loan Fund to borrow money starting next week to maintain their funds. operations during coronavirus-related closures.
As part of the program announced Wednesday, small businesses in Wayne County can apply for working capital loans ranging from $ 5,000 to $ 50,000 from TCF Bank of Detroit, which can be used for payroll, rent and public services.
“It bridges a gap both in terms of time and focus on some very small businesses in Wayne County that are in critical need of financial assistance,” Wayne County manager Warren Evans told Crain’s.
Criteria for loans include loss of income of 25% or more due to economic upheaval from the coronavirus outbreak, said Gary Torgow, executive chairman of TCF Financial Corp.
“Our goal is to strengthen small businesses in communities that are really struggling,” Torgow told Crain’s. “Building this loan fund will give us the opportunity for a client as quickly and easily as possible to get those dollars out into the community so that struggling small businesses in the county are helped as quickly as possible.”
The initial $ 6 million will be available for loans within a week of the application and qualification of small business owners, Torgow said.
Interest rates for the loans will range from zero to 2% and will only be interest for the first six months, Evans said.
The revolving loan fund will likely reach $ 10 million as borrowers pay off the initial loans, Torgow said.
TCF Bank, with its Chemical bank brand, has 15 bank branches in Wayne County.
Wayne County’s $ 3 million contribution comes from community development funds aimed at struggling communities, such as Detroit and neighboring suburbs, Evans said.
TCF Bank has created a page on his site for small business owners to apply for the loans.