The NU student group is making loans to small businesses during the pandemic

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When the coronavirus pandemic forced Evanston’s shops, restaurants and offices to temporarily close, Weinberg senior Femke Munting predicted that some of these small businesses would go under within weeks. However, as president of Lending for Evanston and Northwestern Development (LEND), a student-run microfinance organization in Northwestern, Munting did not feel helpless. She mobilized the LEND team and developed a plan to support local businesses in the city.

“Situations like COVID really test organizations,” Munting said. “LEND wanted to show that we are there for this community and want to help.”

Founded in 2010, LEND is a not-for-profit organization providing loan and development services to small businesses in Evanston. It often works with women-owned and minority-owned businesses, as well as with other businesses located near campus in areas such as Main-Dempster Mile and Howard Street.

To help Evanston businesses in need of financial aid during the pandemic, LEND launched the COVID-19 Assistance Program. It provides interest-free and collateral-free loans to businesses on request of up to $ 5,000. The organization raised $ 60,000 for the program through donations and received an additional $ 100,000 through a program grant from the City of Evanston.

Companies fill out a short form online to apply for a loan. Unlike the complex forms companies have to fill out to apply for loans through the U.S. Small Business Administration, LEND has simplified the process, Munting said. LEND’s loan application asks questions about a company’s purpose and finances. The LEND team members then get in touch with companies applying within one to three days, while the SBA can take months. The board of directors of LEND makes the final decision on which companies receive loans.

The coronavirus aid loans granted by LEND are conditionally forgivable, which means that repayment terms depend on the circumstances of the particular company, Munting said.

“We tell companies that LEND loans are the last ones to pay back,” she said. “We want them to focus on growing their business and we only remember that when they are making money.”

Katherine Gotsick, executive director of Main-Dempster Mile, said the impact of LEND during the pandemic goes beyond financial support. Loan companies also have access to free development services through LEND, including QuickBooks training, website development, financial advice, and marketing.

Gotsick said a handful of companies that are part of the Main Dempster Mile have obtained loans through LEND, including Evanston Grill, a restaurant for which LEND also helped create an online ordering platform. These additional services allow companies to adapt to the demands of the pandemic, she said.

“During the pandemic, my job was marrying the right companies with the right opportunity to help,” Gotsick said. “LEND has been incredibly handy for my district, and we’re all so grateful for it.”

La Cocinita, a Latin American street food restaurant in downtown Evanston, also received a loan from LEND. Owner Rachel Angulo said LEND provided marketing support to La Cocinita and created a video about the restaurant for her Instagram account.

Angulo said that working with LEND was an amazing experience overall. They helped her with many projects that she didn’t have time for, between running the restaurant and taking care of two young children.

“We’ve never worked with a public relations firm before, so I just did marketing,” Angulo said. “LEND provided the fresh eyes and the know-how that we needed.”

To date, LEND has granted 31 Evanston corporate loans during the pandemic and is still distributing capital. According to Munting, LEND has processed over 100 applications so far this year, compared to five in 2019. The organization distributes between $ 10,000 and $ 15,000 roughly every two weeks, according to Munting.

Working with small businesses during the pandemic taught Munting how much they rely on their community to survive. She urges students and residents to shop and eat locally to prevent the number of empty storefronts in Evanston from growing.

“If you can move 15 percent of your monthly spend off of Amazon and into small businesses, it helps a lot,” said Munting. “If there is any way you can mobilize your money during the pandemic, this is a great opportunity.”

E-mail: [email protected]

Twitter: @zoermalin

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