Mason City Council has approved the distribution of $500,000 in Forgivable loans to be administered by CIC that is intended to fuel recovery and support the preservation of small business operations in the City.
Purpose: This program is designed to provide immediate assistance and is intended to cover critical operational expenses not covered by other business assistance programs.
Forgivable or No Interest Loan: Based on a company’s 2019 payroll, the business owner may apply for a loan ranging from $2,500 to $15,000. Loans will be forgiven contingent upon the business maintaining operations within the City of Mason either one or two years after the loan distribution date. Loans that do not qualify to be forgiven will be required to be repaid within six months after the end of the term without interest.
Application: The online application for the Mason Small Business Recovery Programs will be open June 1 through June 10, and are available through this website. Businesses are eligible to apply for multiple programs.
Minimum Eligibility Requirements:
- The business shall be a current Mason business with a physical location within City of Mason limits. Check here.
- The business must be open to the public, or have been open to the public the week preceding Ohio’s Stay at Home Order, with regular business hours. (March 15, 2020, for food and beverage businesses and March 19, 2020, for other businesses.)
- The business should be consumer-based, including retail or service establishments, such as those that rely on walk-in customer activity or appointments. Some examples include restaurants, salons/barbershops, retail shops and breweries/bars.
- Corporate Franchisers not locally owned and independently operated are not eligible.
- The business cannot be a direct sales company (i.e., selling products directly to the consumer in a non-retail environment).
- The business shall be in compliance with all City Ordinances and in good standing with the City of Mason.
- The business shall have 50 employees or fewer.
- The business shall have less than $1 million in annual payroll.
- While not required at this time, the City reserves the right to request additional documentation to support information provided on this application and the request for assistance.
- A loan agreement will be completed between the City and the small business.
Repayment and Forgiveness of Loan:
Tier 1 – If the small business continues to operate within the City of Mason after one year of the award, the Tier 1 award amount would be considered forgiven and will not be required to be repaid.
Tier 2 – If the small business continues to operate within the City of Mason after one year of the award, 50% of the Tier 2 award amount would be considered forgiven and will not be required to be repaid. If the small business continues to operate within the City of Mason after two years of the award and the 2021 annual payroll is at least equal to the 2019 annual payroll, 100% of the Tier 2 award amount would be considered forgiven and will not be required to be repaid.
If the award does not qualify to be forgiven within the term described for each tier, the small business would have a no interest loan with repayment due within six months after the end of the term.
Calculating Loan Eligibility:
|2019 Payroll||Tier 1 Maximum Award||Tier 2 Maximum Award|
|Payroll < $100,000||$2,500||$5,000|
|Payroll > $100,000 but < $500,000||$5,000||$10,000|
|Payroll > $500,000 but < $1 million||$7,500||$15,000|
Thank you to all of the Mason small businesses who applied for the Service Agreement and Forgivable Loan Programs. The application period for both programs closed on Wednesday, June 10. Small Businesses in Mason still have the opportunity to sign up to be a participating location as part of the Come Together Mason E-Gift Card Program.
This program is a partnership between the City of Mason and the Mason CIC.