WATERTOWN — The Watertown Trust is offering a two-month deferred payment plan for businesses affected by the coronavirus.
Businesses will have the option to hold off paying on their loans with the Watertown Local Development Corp., also known as the Watertown Trust, for two months. The local development corporation board approved the plan on Tuesday morning during a teleconference call.
The deferred loans will be for May and June. The program goes into effect May 1. The businesses will have to pay on the two months of loan payments on the “back end of the loan,” Mr. Rutherford said.
A letter will go out to Watertown Trust clients in the next couple of days explaining the program.
“We’re focusing on how to streamline it,” Mr. Rutherford said.
The Watertown Trust board expects that businesses will have problems with cash flow during the coronavirus outbreak.
Mr. Rutherford expects that local businesses will be forced to lay off workers during the economic and public health crisis.
The Watertown Trust will not receive $68,000 in revenues for each of the two months of the loan deferments, he said.
The local development corporation will not invest in any additional Certificate of Deposits during the time that the deferred payment plan is in effect.