City receives $1.6M for loans for businesses impacted by COVID-19

FALL RIVER — A new infusion of federal money has come to the city to help local businesses impacted by the COVID-19 pandemic and this time from the U.S. Department of Commerce’s Department of Economic Development Administration.

On Friday U.S. Secretary of Commerce Wilbur Ross announced his agency is awarding a total of $17.8 million in CARES Act Recovery Assistance to Massachusetts in a Revolving Loan Fund.

In Fall River, the EDA is providing $1.6 million for loans to be administered by the Bristol County Economic Development Consultants.

Ken Fiola, BCEDC vice president, said his agency applied for the EDA funding.

“In this particular program we’re making money available businesses that need in excess of $50,000. The other loan program we have is for $50,000 and below,” said Fiola, referencing Small Business Stabilization Loan/Grant program that has more than $1.2 million in a loan to grant program was funded through CARES Act money appropriated to the Community Development Agency.

Fiola said the loan program will offer interest rates in the 2.7 to 3 percent range to companies located in Fall River.

“They can be used for business expansion or business retention,” Fiola said. “It can be used for working capital like machinery and equipment or real estate acquisitions.”

“Any Fall River business is eligible and we will probably have the applications available within the next two to three weeks. Our commitment is to spend the entire $1.6 million by September 2022, but I’m hoping to put the money out much sooner and I’m hoping to have it all out in 12 months,” said Fiola.

“This is very positive for businesses in our community and this is the type of loan program we can lend directly to businesses or we can partner with our local banks,” said Fiola.

Other South Coast communities have also been selected for the EDA funding, with the South Eastern Economic Development Corporation in Taunton receiving $3.6 million and the New Bedford Economic Development Council, Inc. receiving $2.6 million.

In a release issued by the EDA, Ross said President Donald Trump “is working diligently every day to support our nation’s economy following the impacts of COVID-19 through the CARES Act.”

“These investments will provide small businesses across Massachusetts with the necessary capital to rebound from the coronavirus pandemic and, in turn, create a stronger and more resilient state economy for the future,” said Ross.

Email Jo C. Goode at jgoode@heraldnews.com