Middletown this week approved a $1 million small business bridge loan program in an effort to provide some funding to businesses in town, especially those unsuccessful in obtaining federal loans made available via the CARES Act.
The city’s Common Council established the Middletown Small Business Economic Development Bridge Loan program Monday night. The program will be funded with nearly $750,000 Middletown already had from the federal Community Development Block Grant program, and the city will look for the remaining funds in its budget, Mayor Benjamin Florsheim said.
Middletown businesses will be able to apply for loans of up to $10,000, which Florsheim acknowledges might not be a game-changer for many companies.
“We know that a $10,000 loan might not be a huge amount compared to what is needed,” Florsheim said. “The hope is that we can make a little bit of difference at the local level.”
Florsheim said he wants the program up and running by the city’s June 15 budget deadline. City officials will approve the loans, which will be distributed by the Middlesex Chamber of Commerce’s Middlesex Revitalization Commission.
Middletown’s small businesses, especially those in the restaurant industry, have been hit hard by the COVID-19 pandemic, Florsheim said. Since the town’s economy is reliant on small business, it’s important to step in where possible if federal recovery efforts fall short, he said.
“We’ve all read the stories about some of these federal programs going to these large companies,” Florsheim said. “That’s obviously a big problem for a city and a state that relies on small business.”
