The City of Auburn Working Capital Loan Interest Subsidy Program is designed to provide much needed assistance to Auburn’s small business community during the COVID-19 world health crisis by providing an interest subsidy to applicants who have been approved for a loan with a participating lending institution. The main objective is to enable those businesses to remain viable in the current environment through the provision of financial assistance. This program gives the City the potential to provide subsidies supporting up to 160 businesses assuming a maximum amount of $25,000 per loan.
Businesses located within the corporate limits of the City of Auburn seeking working capital loans are eligible for the program. The borrower must certify that this loan is necessary to remain in business within the City of Auburn.
- Loan Use: The loan from the financial institution must be for working capital expenditures defined by the lender.
- Term: 1 to 3 years
- Rate: Negotiated by the lender, up to 4%
- Maximum Loan Amount eligible for Interest Subsidy: $25,000. (While lending institutions may fund larger loans, the Interest Subsidy Program will only cover interest respecting $25,000. All other interest will be the responsibility of the borrower.)
- Collateral for Bank Loan: Dependent on the participating lender’s requirements to meet their underwriting standards. Collateral for the loan is up to the discretion of the financial institution
- Applications should be submitted to the City by participating lending institutions for businesses requesting eligible working capital loans.
The City will then follow the normal Amendment 772 approval process which will involve:
- Public notice of the proposed subsidy beneficiaries
- Advertisement of a Public Hearing for the project a minimum of 7 days prior to the City Council Meeting
- Public Hearing at the City Council Meeting to consider project specifics
- Adoption of the funding Ordinance
- Approval Period: Generally 1 to 3 weeks – dependent on submission and Amendment 772 process
The program has been developed in coordination with the Auburn Chamber of Commerce and a group of financial institutions within our community. The participating institutions will each commit a minimum of $500,000 to provide eligible businesses with working capital loans. Each bank will handle its own loan underwriting.
If you have questions about the program, visit our Frequently Asked Questions page for guidance.
If you have additional questions about the City of Auburn Working Capital Loan Interest Subsidy Program, please contact Leslie B. Chambers at [email protected] or 334-501-7276. To apply for an eligible Working Capital Loan, contact one of the lending institutions listed below.
AuburnBank - Hunter Smith 334.887.2799
BancorpSouth - Johnny Kincey 334.821.2220
MAX Credit Union - Martee Moseley 334.321.2371
Regions - Rett Moncrief 334.321.7154 or Bart Aldridge 334.321.7140
River Bank & Trust - 334.321.2371
Southern States Bank - Max Coblentz 334.737.1092
Troy Bank & Trust - Marie Gill 334.610.8001
Trustmark - 334.501.2354
For general business needs, please contact the Auburn Chamber of Commerce at 334.501.3292.