Rockford forgives nearly $1M in small business loans for pandemic relief

By Kevin Haas
Rock River Current
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ROCKFORD — The city will forgive about 70 microenterprise loans totaling nearly $1 million in an effort to help small businesses recover from the coronavirus pandemic.

The loans of up to $15,000 were provided to businesses with five or fewer employees at 0% interest. They were initially designed to be repaid over three years following a one-year deferment time.

City Council members voted 14-0 Monday to approve loan forgiveness.

The city is using funding from the federal Coronavirus Aid, Relief and Economic Security Act to cover the cost of the loans.

“We believe that these businesses are still hurting,” Mayor Tom McNamara said on This Week in the Stateline with Steve Summers.

McNamara noted the recent closure of Rockford Rathskeller, whose owners said they couldn’t build enough momentum to sustain their business during the pandemic, as an example of what the city is trying to prevent.

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About 67% of the companies getting relief are minority owned and about 70% are owned by women, McNamara said.

“I believe these small businesses are the ones that we need to help. They’re the backbone of our community,” McNamara said. “They’re really owned and operated by our friends and our family and our neighbors.”

Council members also decided to rebate 50% of liquor license fees for bars and restaurants this year. The rebates were previously issued in 2020 as a means to provide relief to bars and restaurants, which were among the hardest hit by shutdowns meant to curb the spread of the coronavirus. The rebates total about $240,000.

This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas.