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Millbrook City Council Passes Resolution to Allow Help for Small Business Owners in City Limits with Interest Payments on Bridge Loans during COVID-19 Crisis


Millbrook Mayor Al Kelley

During Tuesday night’s meeting of the Millbrook City Council, March 24, a particular item on the agenda was approved to help small businesses within city limits, by paying interest on Bridge Loans due to COVID-19. Social Distancing was implemented during the meeting.

Millbrook Mayor Al Kelley explained this is not a loan from the city, but rather the availability for the city to pay the interest on any approved loans for area small businesses for up to one year. Businesses would be responsible for principle payments.

Below is the resolution passed by the Council.

WHEREAS, the City of Millbrook, Alabama (the “City”) supports and encourages economic development within the City and recognizes the economic implications to businesses within the City as a result of COVID-19;

WHEREAS, the City Council of the City (the “City Council”) has determined that public efforts may be necessary to foster and assist such businesses within the City in response to economic duress resulting from COVID-19; and

WHEREAS, the City Council has determined that it is desirable and in the best public interest of the citizens and taxpayers of the City for the City to develop a plan to assist businesses located within the City in response to COVID-19.


Section 1.            The City Council adopts the recitals to this resolution as findings.  The City Council has ascertained and found and does hereby declare that it is necessary and advisable for the City to proceed with the development of a program to provide assistance for businesses located within the City who have or will suffer economic duress as a result of COVID-19, and authorizes the Mayor, and such other city officials and consultants as deemed necessary by the Mayor, to take such action as necessary to develop such a program utilizing such means available to the City, all subject to the final approval of the City Council.

Section 2.            Subject to the final approval by the City Council, the Mayor is hereby authorized to develop an Interest Assistance Payment Program to incorporate components similar to the following:

(a)          The City shall pay interest for up to twelve (12) months on Qualified Loans by Qualified Lenders to Qualified Businesses (the “Interest Assistance Payment”).

(b)          The Qualified Loan amount shall not exceed $30,000 for each Qualified Borrower and no Qualified Borrower or affiliate of a Qualified Borrower shall have more than one Qualified Loan, directly or indirectly.

(c)           The total Interest Assistance Payments to be made by the City shall not exceed $100,000 in the aggregate.

(d)          A “Qualified Business” shall mean an active business with its principal place of business in Millbrook, Alabama, with more than 80% of its assets and revenues derived within Millbrook, Alabama which also meets the following criteria:

(i)            as of March 1, 2020, at least 3 full time employees and not more than 10 employees all of whom work within Millbrook, Alabama on a full time basis;

(ii)           is current on all Millbrook taxes and business licenses and remains current on the payment of all taxes and businesses licenses during the 12-month period of the Interest Assistance Payment period; and

(iii)          such other criteria as the Council shall determine is appropriate or necessary.

(e)          A “Qualified Lender” shall mean the following:

(i)            A third party unrelated lender which is a bank or credit union licensed to do business in Alabama and having an office in Millbrook, Alabama; and

(ii)           Such other criteria as the Council shall determine is appropriate or necessary.

(f)           A “Qualified Loan” is a loan by a Qualified Lender to a Qualified Business which business has been designated in writing by Millbrook as qualified for the Interest Assistance Payment, prior to the date the loan was incurred, with an interest rate no greater than 5% per annum.  The Qualified Lender must get the prior approval of the City of Millbrook prior to making the loan.

(g)          The “Interest Assistance Payment Period” shall mean a 12-month period starting on the closing date of a Qualified Loan. 

(h)          This is a limited program and is being designed with the stated purposes of mitigating the economic consequences to businesses in Millbrook, Alabama resulting from the COVID-19 emergency, with no prepayment penalties and for a term not to exceed 12 months.

Section 3.            Subject to the final approval of the City Council, the Mayor is hereby authorized to prepare a plan to consider waiving  late payment penalties through June 1, 2020, for small retail businesses whose monthly retail sales during the previous calendar year averaged $62,500 or less, who are unable to timely pay their February, March and April City sales tax liabilities.  

Section 4.            This resolution shall be effective immediately.

If you are own a small business in Millbrook City Limits and are interested in taking advantage of this program, contact Millbrook City Hall at 334-285-6428.