(File photo/battlefordsNOW staff)

By Angela Brown

COVID-19 support

City to help with loan interest so businesses can pay their property taxes

Jul 2, 2020 | 5:31 PM

Businesses in North Battleford having difficulties paying their property taxes due to the financial impact of COVID-19 may be able to see some help.

For those who apply for a loan from a financial institution to pay their 2020 property taxes, the city will cover the interest on the loan.

The city expects the program will be able to launch in August 2020.

According to administration’s report, the city is making the loan-interest assistance program available for commercial properties to offer them some short-term relief.

Finance director Steve Brown said the program will “give them a little bit more of a break on paying the taxes.”

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As part of the program, the city will subsidize the business’ loan through a local financial institution, such as a charter bank or a credit union, for up to three months. The interest subsidy on the loan would be the city’s cost.

“I have reached out to a few businesses, as I understand some others have as well. There would be a decent amount of uptake for the ones that do qualify,” Brown said.

Brown anticipated from about $20,000 to $40,000 in the interest subsidy cost for the city, depending on the number of business that apply and are accepted.

He stressed businesses would need to qualify for the loan-interest assistance program first.

If a property is in arrears as of January 1, 2020, the business will not qualify for the program. The business needs to provide proof it has accessed one or more of the federal aid programs available in 2020. As well, businesses must seek to obtain an independent approval from a local financial institution for the loan to be used to pay their property taxes, and provide proof of the loan being outstanding. The city stated it will not issue guarantees on lines of credit.

Businesses approved for the program must pay their property taxes by Sept. 30. The interest rate subsidy will be available for three months, ending on Dec. 31.

Payments for the subsidy will be made to the business’ property’s tax account as a credit to the account. Depending on the program uptake and the state of the local economy, the program could be extended, based on a review completed in December 2020. The city stated there will be an interest rate cap of four per cent. If the approved rate is higher, the business will be responsible for it.

Council supports the initiative.

Mayor Ryan Bater said the program is being made available directly due to the financial challenges many businesses are facing during the pandemic. The program will assist owners of commercial properties in the city that “may require some cash-flow assistance with the payment of property taxes.”

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angela.brown@jpbg.ca

On Twitter: @battlefordsNOW