Local businesses impacted by the novel coronavirus (COVID-19) shutdowns may be eligible for a $5,000 loan.

During his daily Facebook Live update on Tuesday, Mayor Ray Giacobbe, Jr. announced Rahway CARES (Coronavirus Aid Relief & Economic Stimulus) program in conjunction with the Rahway Arts & Business Partnership (RABP) and the United County Economic Development Corporation (UCEDC). The mayor also announced that there will be no interest accrued on property tax bills due in May, pending City Council approval at a special meeting later this week (which will be livestreamed to adhere to social distancing guidelines).

The retail landscape went from thriving to struggling in only a matter of weeks, Giacobbe said. “Helping these businesses survive is smart economic policy,” he said.

Eligible businesses must have:

• been in businesses at least one year;
• less than 20 employees; and
• a personal credit score of 650 or higher.

Nonprofits and national franchises are not eligible.

The $5,000 loan would be forgivable after two years. Should a business move or go out of business before then, it would be responsible for paying back the loan. Loan applications will be available on the city’s website as of May 4 and administered by the county. The mayor anticipates a turnaround time of seven to 10 days on applications.

About $250,000 in all will be available for loans, with the potential to increase, according to City Administrator and Redevelopment Director Robert Landolfi. Funding for the loan program will be reappropriated from taxes collected for the expanded Special Improvement District (SID), which were released from escrow after a legal challenge.

The application will ask businesses how they’ve been impacted — if it closed due to non-essential businesses being closed or a dine-in restaurant that shifted to primarily takeout — but it won’t be terribly intrusive. Landolfi said there won’t be an onerous level of documentation and detailed required, such as providing profit-loss statements.

In other efforts related to COVID-19 relief, FLAG (Frontline Appreciation Group) has been raising money to purchase meals from local restaurants to provide for local front line workers, including police, fire, EMS, DPW and hospitals.

The RABP provides regular updates about operations of local businesses on its Facebook page and is sponsoring Taste of Rahway Weekend (check it out to see if you can win $100).

Rahway Chamber of Commerce also has a resources page on its website related to COVID-19.