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How the Town of Lexington business loan program would work

If approved by town council, property tax for Town of Lexington businesses and residents would decrease by 21 percent.
Credit: WLTX

LEXINGTON, S.C. — Town council for Lexington will vote on Monday night whether or not to start a business loan program to help businesses during the coronavirus pandemic.

Since the pandemic started, businesses have been taking a hit. With the mandatory stay at home or work order, many stores were forced to close their doors.

Some restaurants were able to continue to operate by having carryout, curbside pickup, or delivery service only.

Almost two weeks ago, some retail stores were allowed to reopen their doors. While stores had the option, many were unable to open back up due to several issues.

One of those involve the Paycheck Protection Program loans. Many businesses across the country applied for the federal loans but many restaurants and stores were unable to receive the loans.

Without having a way to pay employees or be able to pay rent, many businesses have decided not to reopen their doors until they can figure out logistics.

A message from Town Council on the proposed COVID-19 relief package. A final vote will be held on Monday, May 4, 2020 during the regularly scheduled council meeting which will be held virtually. You can tune in on the Town’s Spectrum channel 1301 or on the Town’s YouTube channel.

Posted by Town of Lexington, SC on Saturday, May 2, 2020

Recently, the Town of Lexington announced they were thinking about starting a business loan program to help owners get through the coronavirus pandemic.

"A lot of businesses haven't been able to get assistance so we just thought it would be a good way to help our in town businesses out," said Laurin Barnes, the spokesperson for the Town of Lexington.

For the past few weeks, businesses have been participating in the town's online survey so officials would know the best way to assist business owners.

Town council has proposed using $1 million from the hospitality tax and transferring it to the general funds. The town would then use that money for businesses to be able to use for loans to help them through the pandemic.

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There would also be a permanent 21 percent property tax decrease for both businesses and residents.

In order to offset the costs, there would no longer be an end date for having a hospitality tax. In other words, the two percent tax on prepared meals and beverages would continue and not end.

"When council passed the hospitality tax, it was set to end in 2023. With this ordinance, it would basically remove that sunset date so the hospitality tax would continue," explained Barnes. "If approved by council (Monday night), if the sunset date is removed, it would provide for funding for all the ongoing traffic projects we have in the town and it would also provide additional funding down the road for traffic projects."

Town council will vote Monday night at 6:30. You can watch the meeting on the Town of Lexington's YouTube channel or on Spectrum channel 1301.

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