Los Angeles-based Cathay Bank announced Wednesday that it has launched a “Smart Relief” loan program to help small business owners affected by the COVID-19 pandemic.
The $2 million loan program offers low interest rate short-term loans ranging from $5,000 to $10,000 and is initially being offered to small businesses located in Los Angeles County.
“This is an unprecedented time for all of us, and we know many small businesses are being hit especially hard by the stay-at-home order,” said Chang M. Liu, Cathay Bank’s president and chief operating officer. “We want to do our part to help our community through this challenging time and hope they will thrive when this is over. We encourage our communities and peers to join our efforts in helping this important business segment during this trying time.”
To be eligible for the program, small businesses must be located within Cathay Bank’s assessment area in Los Angeles County, must be in business for at least one year, and have an annual revenue not exceeding $1 million.
Those that qualify will receive an 18-month term loan with a 0% interest rate for the first six-month period with no payment due, followed by a 2% interest rate with full amortization of the fixed principal and interest due monthly for the remainder of the term. The application fee will be waived, as well.
To apply, email the Business Banking Group at BusinessBankingGroup@cathaybank.com, contact the nearest Cathay Bank branch, or call 1-800-922-8429.
For other business resources available at the state and federal level, visit www.uschamber.com/co/small-business-coronavirus or www.sba.gov/offices/disaster/dfocw/resources/1658272.