Corporate & Securities Blog

On May 8, 2020, Hamilton County, Ohio announced that it would be launching a small business loan program to facilitate the distribution of financial aid to small businesses. The funds to be used in the program were received by Hamilton County under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Hamilton County received a total of $142 million from the CARES Act and has currently set aside $5 million of these funds for use in the small business loan program. Hamilton County officials have indicated that the aggregate amount of funds used for these small business loans may be increased.

Business that qualify are eligible to apply for a loan of up to $10,000 from Hamilton County. To qualify the business must (i) have a gross revenue of less than $1 million; (ii) have 50 or fewer employees; (iii) show at least a 50% reduction in revenue related to the COVID-19 pandemic; and (iv) not have received COVID-19 related funding from the federal government, whether through the CARES Act or otherwise. 

Hamilton County officials have indicated that funds from the program could be used to make rent or utility payments, for payroll purposes and to install or maintain required safety precautions due to COVID-19. Moreover, the loan will be forgivable, provided the business is able to either keep or create one full-time job within 3 months of receiving the loan.

Hamilton County is currently in the process of finalizing the guidelines for the program, so additional details should be forthcoming, including regarding the application process. KMK will continue to monitor developments related to this program and will summarize additional guidance as it becomes available.