FAQs • GNRC, TN • CivicEngage

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Is the COVID-19 Recovery Loan forgivable?: No, the loans provided to small businesses through GNRC’s CARES Act RLF loan program are not forgivable.

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COVID-19 Recovery Loan FAQ's

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1. Is the COVID-19 Recovery Loan forgivable?: No, the loans provided to small businesses through GNRC’s CARES Act RLF loan program are not forgivable.

2. Can I apply if I already received an SBA EIDL or SBA PPP loan or any other federal, state, or local assistance to address business needs resulting from the pandemic?: Yes, receipt of an SBA Economic Injury Disaster Loan or SBA Paycheck Protection Program loan or any other public assistance does not impact eligibility provided those loans are in good standing and RLF funds are not used for identical expenses or to make payments on or refinance existing loans.

3. Are the loans only for businesses?: Yes. The COVID-19 Recovery Loan Program is only open to existing for-profit small businesses as defined by the Small Business Administration, and the business must be located within the 13 county GNRC lending area.

4. Are start-ups eligible?: Yes, start-up businesses are eligible.

5. Why is GNRC targeting certain industries and demographic groups?: All eligible small businesses in Middle Tennessee are encouraged to apply. The industries and business sectors targeted experienced significant disruptions from COVID-19 related closures and cancellations.

6. Is collateral required?: Loans will be collateralized with business assets potentially including real estate. GNRC also requires personal guarantees.

7. Are the payments fixed for the life of the loan?: GNRC is offering loans with zero interest for the first 24-months. The monthly payment will increase after two years because it will include both principal and interest.

8. May a business use the loan to refinance or consolidate other debt?: No, the proceeds may not be used to refinance or make payments on existing debt.