McLean County's retooled COVID relief program has approved its first round of business loans.
The Bloomington-Normal Economic Development Council (EDC) is administering the McLean County Targeted Development Loan Program.
Patrick Hoban, the EDC's CEO, said interest in the program spiked after the county doubled the loan amounts to $10,000, removed interest payments and made them forgivable for COVID-related improvements, including supplies, technology and real estate--costs not covered by the state federal aid.
“If they’ve got a plan to upgrade their systems and they are buying these COVID-related items anyway, this is a great way to get a refund,” Hoban said. “That, along with zero-percent interest, helped out a ton.”
Hoban said the pandemic continues to have a crushing effect on much of the economy, particularly small businesses.
“Some of your local mom-and-pop retailers that aren’t allowed to have sit down dining anymore, they are struggling,” he said.
The loan recipients include three bars and restaurants: Finish Line in Chenoa, Papa G's in Downs and Tony's Tacos in Bloomington. Coffee Hound (East Washington Street location) in Bloomington also received a loan, along with Meltdown Creative, a graphics design company in Bloomington, Ohm Fit Active Wear in Normal, and Proving Ground, a rock-climbing gym in Normal.
Hoban said nearly 30 businesses have applied for the loans. He expects another round of loan recipients will be announced by the end of the year.
One business applied for a loan in the months before McLean County changed the program. Moraine View Restaurant and Kayak Rental near LeRoy previously received a $5,000 loan. Hoban said the loan was modified to make it forgivable for COVID-related costs.
McLean County created the $600,000 program in April to help employers struggling due to pandemic-related closures. The money sat mostly unused for months as businesses sought grants from the state and federal governments.
Hoban said the fund has $525,000 remaining.
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