Hampton City Council
Hampton City Council has authorized a forgivable loan assistance program to be administered by the Hampton Economic Development Authority (EDA) for small Hampton-based businesses. The program is designed to help small businesses adversely impacted by Gov. Ralph Northam’s order to close or significantly limit business operations as outlined in Executive Order 53. These forgivable loans of up to $10,000 are designed to give Hampton businesses access to needed cash until federal and/or state assistance funds arrive.
The loans can be used for payroll expenses, rent or mortgage payments, utility expenses, marketing and other eligible business expenses incurred during normal operations. Applications will be accepted until the earlier either available funds are exhausted or until Sept. 30.
Apply for the small business loan
While Hampton city offices and facilities are closed to the public until further notice, the Economic Development team is here to provide business resource information and assistance during this time. Our staff is working from home, but you can still reach them. Please visit our contact us page to email one of our staff members.
Frequently Asked Questions
This FAQ addresses general questions associated with award and management of the Hampton COVID-19 Small Business Assistance program. The Hampton Economic Development department is providing this information as a service to our businesses, applicants and recipients communities in the hopes it will address high-level questions that may arise in this regard. Please note that given the fact that COVID-19 and associated impacts continue to evolve, applicants and program recipients are strongly encouraged to monitor both the Small Business Administration page and the City of Hampton’s COVID 19 Resources for Businesses page for updates.
What is the Purpose of the program?
The program is to provide financial assistance to for-profit small businesses that are located in the City of Hampton and have been impacted by the governor’s executive order to close or significantly limit operations as outlined in Executive Order 53.
Who manages the program and how is it funded?
City Council authorized the forgivable loan assistance program, but it will be administered through the Hampton Economic Development Authority (EDA)It is designed to provide financial assistance for the adverse economic impact resulting from the COVID-19 coronavirus pandemic. This program has a finite source of funding.
What is the maximum amount a business can receive?
The program may provide a forgivable loan up to $10,000 per eligible small independent businesses impacted by COVID-19.
What businesses are eligible?
For-profit small businesses that are located in the City of Hampton and had annual gross receipts of $1 million or less averaged over its last year’s financial disclosure statements used for tax purposes. The EDA will consider an application from businesses with common ownership or an affiliate of an approved applicant.
How can a business use the loan proceeds?
- Payment of city tax (payment of delinquent taxes, in whole or in part, will eliminate the EDA’s ability to forgive the portion of the loan used for that purpose).
- Payroll expenses.
- Rent or mortgage payments on business property.
- Utility expenses.
- Other business expenses incurred during normal operations and deemed eligible by the EDA.
What are the criteria for an application to be considered by the EDA?
- Eligible businesses must have applied for federal relief through the Small Business Administration Loan (if eligible) (the “SBA Loan Disaster Relief Program”), and have determined the relief available under that federal program will not sufficiently sustain the applicant’s viability as an on-going business concern.
- The business applicant must
- be in good standing with the State Corporation Commission.
- have a current Hampton business license.
- demonstrate a minimum 25% decline in sales revenue since February 2020.
- have a minimum 6 month business operating history.
How can I get the loan forgiven so I don’t have to pay it back?
- To have the loan forgiven, the business’ payment of tax and fees to the city must remain current from the date of its application through at least six months. Only one loan will be approved for an eligible business. This loan program cannot be used in combination with the Tax Relief Program being offered by the city.
Can I apply for this loan and also the tax deferment offered by the treasurer?
- No, you can only apply for one form of tax relief from the city.
Real estate holding companies and corporately owned franchises are not eligible. The EDA, at its discretion, may exclude a business it deems ineligible for the program.
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