The Kenosha Area Business Alliance has partnered with tool manufacturer Snap-on Inc. to administer up to $500,000 in grants to small businesses impacted by COVID-19.
Grants of up to $15,000 will be available to small businesses affected by the virus with no more than 20 full-time equivalent employees. These businesses must be currently closed with plans to re-open and create at least one FTE, which may include the business owner.
A business would also have eligibility for the grant if partially open with plans to expand services and create at least one FTE, according to a press release.
Grant funds can be used for working capital such as paying rent, purchasing inventory, and paying salaries. The funds cannot be used for expenses that were previously paid for by another emergency assistance program.
Businesses within the city of Kenosha are eligible for the grants. However, some funding is earmarked only for businesses within Tax Incremental Finance District 4, which includes downtown. Funds do not have to be repaid so long as the business remains open and retains the job created for at least one year.
Non-compliance will result in the grant being converted to a loan.
Businesses in need of more than $15,000 may also apply for an interest-free loan of up to $15,000. The interest-free loans must be repaid over 48 months, with payments beginning one year after the loan origination.
Snap-on Inc. has provided the first $100,000 for the loan fund while KABA is in the process of raising up to $400,000 from other Kenosha businesses and individuals. The anticipated start date of the program is June 1, although a public announcement will be made once the grant application process has been formalized.
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