Baraboo Creates Relief Loan Fund Program to Help Small Businesses During COVID-19 Closures | Government and Politics
Michael Plautz asked if business owners have asked the city for help. Palm said it has been consulted by homeowners seeking help with mandatory closings that have forced limited or no income for local small businesses since March 17. Governor Tony Evers has extended mandatory closings until May 26.
Kolb also raised concerns about the city’s financial responsibility. The city plans to maintain a good relationship with business owners in order to invite an open conversation if a business is struggling to repay the loan, Downing said.
The city does not require that any type of property lien be attached to the loan. Downing said if a company were absolutely unable to repay the loan, $ 5,000 is a manageable loss for the city, although further discussions could see the city eventually recoup its funding.
“Like any other bank or lending institution, there is always a chance that amounts will not be repaid,” Downing said. “If, for some reason, a company does not reimburse, it would technically be a loss for the city. But we have a good relationship with all of our companies and good partnerships and we hope they will work with us if they can’t get it back by July 15th and we would have another conversation. “
Kolb agreed that “$ 5,000 is a small amount, but 5,000 times 20; we’re starting to talk a few dollars there, ”he said.