Tempe, Desert Financial offer emergency loans to small businesses
PHOENIX — The city of Tempe and Desert Financial Credit Union announced Tuesday they have teamed up to provide $1 million in emergency loans to Tempe-based small businesses struggling due to the coronavirus outbreak.
The Tempe Small Business Loan Program will provide micro loans between $5,000 and $20,000 to local businesses employing between 5 and 50 individuals, according to a press release.
Tempe and Desert Financial Credit Union estimate their partnership could provide loans to about 200 local businesses.
Businesses can utilize these funds to cover payroll, rent, supplier payments and any other costs necessary to sustain operations.
Qualifying businesses must begin repaying the loans 90 days after receiving funds and have up to a 48 month repayment term, according to Desert Financial’s website.
The loans have a 4% fixed interest rate and will be allocated on a first-come, first-served basis.
Other qualifications include a FICO score of 640 or higher, zero delinquency on any federal, state or local taxes, owning and operating no more than three separate locations and a record of conducting operations within Tempe for a minimum of two years.
Interested businesses may apply online or by phone: (602) 335-6318.