The South Plains Association of Governments (SPAG) CORE Loan Program is available to small businesses affected by the COVID-19 pandemic in the following counties: Bailey, Cochran, Crosby, Dickens, Floyd, Garza, Hale, Hockley, King, Lamb, Lynn, Lubbock, Motley, Terry, and Yoakum. Applications are available online and funding is available through July unless it is allocated sooner.

The proceeds from this program may be used towards expenses such as inventory and working capital (overhead operations, payroll, rent, utilities, professional fees, etc.). The goals of the program are to provide financial relief to businesses/industries significantly impacted by the pandemic, job retention for employees across the SPAG region, and sustainability of business operations.

Ineligible uses of funds include:

• Speculative activities
• Projects outside the SPAG region
• Projects that assist in the relocation of jobs to another labor area
• Purchasing or financing equity in private business
• Subsidize interest payments on existing loans

The lending criteria and loan details are as follows:

• Maximum of a 10-year term
• Fixed interest rate of 2.44%
• Anticipated loan amounts: $25k, $50k, $75k, $100k (maximum $250k)
• Collateral will be required on a case-by-case basis
• Six month moratorium on principal payments
• Monthly payments required
• No prepayment penalty

How to apply:

• Complete the online application form
• Two years of most recent Business Tax Returns
• Interim Financial Statements: Balance Sheet and Profit & Loss Statement dated within the last 90 days
• Personal Financial Statement for each business owner over 20%

To learn more about the SPAG CORE business loan program and to see if it's right for your business, visit the SPAG CORE web page or e-mail any questions to spagcore@spag.org.