Supervisors approve microloans for businesses

The Board of Supervisors conducts a virtual meeting, with board chair Jeff McKay and staff spread out in a conference room and the supervisors at their district offices.

During a virtual meeting April 14, the Fairfax County Board of Supervisors approved a new microloan program to help small businesses hurt by the coronavirus crisis.

The $2.5 million Small Business COVID-19 Recovery Microloan Fund would provide zero-interest loans up to $20,000 for working capital, rent, equipment, debt payments, inventory, and other operating expenses.

To qualify, business must have less than 50 employees. That encompasses 94 percent of all businesses in Fairfax County.

The loans will focus on businesses less able to access funds from the federal Small Business Administration, said Board Chair Jeff McKay.

The program is expected to be in place by May 1. The Community Business Partnership (CBP) would administer the application review process and initial distribution of loans. Funds would come from the county’s Economic Opportunity Reserve.

Related story: Revised county budget drops proposal for tax increases and includes fund to support small businesses

Prospective applicants must participate in a brief counseling session and be recommended by a small business counseling program, such as those offered by the CBP, the Mason Enterprise Center or another small business development center, the Financial Empowerment Center, and Virginia Career Works.

The purpose of the counseling session is to ensure businesses can take advantage of federal, state, or local assistance programs. Everyone who applies will have a half-hour or hour-long counseling session but not every application will be funded, said Rebecca Moudry, director of the Fairfax County Department of Economic Initiatives.