Hampton launches small business loan program
For those hit hardest by the pandemic, Hampton is offering some people more time to pay tax bills and a loan forgiveness program for small businesses.
The Hampton City Council — voting unanimously during an electronic meeting Wednesday night — approved a loan and grant forgiveness program that will be managed by the Economic Development Authority, City Manager Mary Bunting said.
Noting that small businesses “are a strong part of the fabric of our community,” she said the city’s EDA will allocate $500,000 from its budget to fund the program.
Eligible independent businesses — those with financial losses directly related to the pandemic who make less than $1 million annually and have at least one location in Hampton — can apply for a loan of as much as $10,000.
Businesses also must have applied for federal relief through the Small Business Administration, if eligible, and have determined that the aid was not enough to help sustain their operations.
For those businesses that apply and maintain current on taxes and all fees due to the city through Aug. 1, the “loan shall be converted to a grant,” Bunting said. Businesses that use a portion of the loan to pay delinquent taxes will need to repay loans with interest, according to meeting documents.
The council also voted to extend the due date on real estate and personal property tax bills from June 5 to Aug. 1 — but only to those who show financial strain due to the pandemic.
Hampton property and business owners must apply to the city’s treasurer’s office by May 15 to see if they are eligible for the extension. For all others, tax bills are due June 5.
Other localities have approved similar measures to ease the financial strain caused by the pandemic and widespread closures: Norfolk waived late fees for property taxes through Aug 1. Virginia Beach voted to suspend the meals tax for May and June.
In addition, the city has redirected $500,000 from the city’s reserve fund, as needed to offset any shortfall.
Residents approved for the tax deadline extension are not eligible for the EDA’s loan program, according to meeting documents.
Applications for the tax extension are available by following this link.
Printed applications will also be available in boxes attached to the doors of the treasurer’s office at the Ruppert Sargent Building 1 Franklin Street.