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City of Aiken Loan Program

Security Federal Bank (Honorable Mention) - Aiken, South Carolina

2021 Community Commitment Awards Submission

  • Entry Category: Community and Economic Development
  • Asset Size: Small

COVID-19 Federal Assistance was not yet available for small businesses in late March of 2020, but businesses were already experiencing the impacts of COVID-19. Security Federal Bank, along with the City of Aiken, Aiken Corporation, and the Aiken Chamber of Commerce, created a one million dollar revolving loan program to assist businesses within the City of Aiken during the COVID-19 pandemic. The loan program was put together in four days and the fund was approved through an emergency ordinance on March 23, 2020. Businesses within the City of Aiken could apply for up to ,000 with loan payments deferred for six months. After the 6-month period, the unsecured loans were amortized for two years at 2.00% interest with payment of around .84 monthly (assuming the borrower took the full ,000). No origination fees or service fees were charged and the principal paid was returned to the loan pool to fund additional loans for others.