Loans available for small businesses struggling with impact of coronavirus in Colorado Springs

Officials announced Monday what they believe is the first of a series of financial assistance programs for small businesses struggling to cope with lost sales during the coronavirus pandemic.

The Survive and Thrive COS program was announced by Mayor John Suthers, city economic development director Bob Cope and organizer Hannah Parsons.

Under the program, up to $25,000 in loans is available to affected businesses having between 2 and 25 employees; money will be allocated monthly over a three-month period and and must be repaid within 3 years with no interest in the first year, 1% in the second year and 2% in the third year.

The loans will help affected businesses recover from the crisis, sustain themselves during it and grow in the future -- with highest priority going to the food industry, retail shops and personal care facilities that had to close, are having difficulty paying rent and laid off employees.

Local donations have contributed $1 million to the loan fund, with officials hoping to eventually increase it to $5 million.

Officials expect to announce more local assistance -- specifically for downtown businesses -- as well as state and federal assistance programs, in the coming weeks.

The Colorado Department of Labor and Employment also offers assistance to small businesses through low-cost loans and special unemployment insurance programs.

"That's going to be a big help," said a manager at Jack Quinn's Restaurant downtown. "We're struggling. We've had to layoff most of our employees. Business is down and we can't make it solely on take-out and deliveries. It's worse than I thought it would be. But we're trying to survive."

Survive and Thrive COS was created by Exponential Impact, an organization that helps new businesses get started, and the Pikes Peak Community Foundation.

For more information, including the loan application process, visit: http://exponentialimpact.com.

The city also has started an artist recovery fund that will provide $500 to artists and creative professionals and help them cover immediate expenses due to cancelled performances and other related events.

In a related announcement Monday, officials said the city will waive penalties and interest for late payment of February and March sales and use taxes for any businesses affected by the pandemic. The tax deadlines will remain in place for those months will remain the same and waivers will be considered on an individual basis.

Late fees for renewal of restaurant and bar liquor licenses also will be waived during the State of Emergency declared because of the virus.

Parking downtown and in Old Colorado City will remain free through April 30.

Finally, the city announced that Colorado Springs Utilities will not disconnect customers who are unable to pay their bills, and a program allowing customers to skip a payment is available.