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City and Indy Chamber to offer loans to small businesses

Small business owners in Indianapolis could find help paying the bills from a new program rolled out by Mayor Joe Hogsett and the Indy Chamber.

INDIANAPOLIS (WTHR) - David Andrichik tried to log on to the federal Small Business Administrations's web site Monday morning to apply for a loan. He gave up after two hours.

Andrichik owns the Chatterbox, a jazz club on Massachusetts Avenue that has been dark and silent for two weeks - a first in the 38 years Andrichik has owned the place. He said it was closed for 9/11 "for 3-4 days, but never, never two weeks."

His seven employees are without jobs and the 100-plus musicians who play the club each month are without a gig. But Andrichik still has bills to pay. He guesses he has enough to get through another six weeks.

"Then I go into personal savings and then retirement," he said.

Like other small business owners in Indianapolis, he knows the wait for an SBA loan could take 4-6 weeks, if not longer. He said a new program aimed at small business owners in need of money could help.

Indianapolis Mayor Joe Hogsett and Indy Chamber President Michael Huber rolled out the Rapid Response Loan Program. It aims to provide small businesses with loans ranging from $1,000 to $25,000 dollars to help cover operational expenses as they await loans and other aid from the state and federal government.

"It's a timely infusion of working capital that can help ensure these employers stay solvent during the crisis. These funds can then help serve as a bridge to SBA disaster loans and other types of long-term financing," Hogsett said.

The goal is to raise $10 million for the program. So far, it's at $3 million, with $1 million coming from Anthem and the remainder from the city's Capital Improvement Board, the Indianapolis Bond Bank and the Indy Chamber.

Andrichik said he plans to apply.

"It will help, absolutely," he said. "It's a good thing to do."

Business owners can apply by going to the IndyChamber's website.

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