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WILKES-BARRE — Restaurant owners struggling financially during the coronavirus pandemic have applied for approximately $125,000 in emergency loans offered by the city, Mayor George Brown said Monday.
The program announced last week offers up to a $7,500 loan at no interest for one year to locally owned/non-franchised restaurants within the city. Guidelines and applications were available Friday on the city’s website, https://www.wilkes-barre.city/restaurantemergencyreliefloanprogram.
“It’s really been aggressively sought out. I’m happy to see that,” Brown said.
He estimated 16 applications have been submitted.
Brown said there has been an “outcry” for financial assistance by restaurant owners whose businesses have been hurt by the limitations placed on them by the state in an effort to slow the spread of COVID-19. Gov. Tom Wolf restricted bars and restaurants from serving sit-down customers and permitted only take-out, delivery and drive-through services.
With state approval, the city restructured a more than 30-year-old Enterprise Zone Development Program and made available more than $300,000. The money has been in an account that hasn’t been touched in 14 years.
Recipients will sign a promissory note for the amount of the loan and pay it off in a balloon payment at the end of the term. The city’s Office of Economic & Community Development will manage and track the loans. In the event of a default on the loan, the city will take legal action.
The city will have COVID-19 related funds available for other businesses through the federal Community Development Block Grant program.
Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott.
