Seaside to offer ‘micro-loans’ to businesses impacted by COVID-19 – Monterey Herald
SEASIDE — Small businesses in Seaside impacted by the COVID-19 pandemic will soon be able to apply for loans of $2,500 to $5,000 through the city’s micro business loan program.
“Staff are preparing the application form and will publish it by the end of next week,” said Seaside City Manager Craig Malin.
Seaside’s revolving business micro-loan program would leverage assistance from the Monterey Peninsula Chamber of Commerce, the Monterey County Community Foundation, and the CSU Monterey Bay Institute for Innovation and Development. economic development.
The loans program would use $200,000 designated in the budget for the 2020-2021 fiscal year for this purpose. City staff recommended that these loans be easy to obtain, that the administration of the program use as few staff as possible, that the program assist as many businesses as possible, and that it leverage the resources of its community partners.
The program would provide loans of $2,500 to $5,000 with no interest or payment required for up to 90 days after the statewide COVID-19 emergency order ends. All loans would have a repayment period of 36 months or three years with no prepayment or prepayment penalties. The interest would be a fixed rate of 3% and the program would be “revolving”, which means that any payment received would be loaned to businesses in need of further assistance. The program would continue to provide loans until at least a year after the emergency order was lifted.
Companies primarily located and doing business in the City of Seaside prior to January 31, 2020 would be eligible to apply. Requirements would include being cash flow positive in 2019 or for any period prior to January 31 that the business was open and in operation, the business would be required to have an active and in good standing Seaside business license, as well as be in good standing with the California State Board of Equalization.
Businesses would be required to obtain technical assistance from the CSU Monterey Bay program and apply for grants through the Community Foundation/Monterey Peninsula Chamber of Commerce program with assistance in applying for technical assistance and the grant program provided by staff from the city. If eligible, businesses will also be encouraged to apply for funding from the Small Business Administration through the city’s Grow America Fund program.
“We would like candidates to avail themselves of other resources, so that they can be successful,” Malin said.
Monterey County recently received funding from the Coronavirus Aid, Relief and the Economic Security Act to help businesses.
On Monday, Rep. Jimmy Panetta’s D-Carmel Valley office announced that Monterey County had received a grant totaling $1,760,000 in COVID-19 Recovery and Resilience Project funding to help the county and its small businesses. to respond to the coronavirus.
Grant funding is allocated to municipalities through the Department of Commerce’s Economic Development Administration under the CARES Act.
The $1.76 million investment will recapitalize the Monterey County Revolving Loan Fund with $1.6 million to support the economic development needs of small businesses and entrepreneurs impacted by the coronavirus pandemic and will also provide 160 $000 to cover the cost of administering the revolving loan fund.
Panetta said that to ensure these funds are flexible so that they can be used for broader activities when reimbursed, the Senate must pass HR 2, the Moving Forward Act, which includes the Flexibility Act. Panetta’s revolving loan fund that would allow counties to reprogram these funds for other economic stimulus efforts as small businesses recover and repay the loans.
The Revolving Loan Fund Flexibility Act was introduced by Rep. Panetta to provide localities with greater flexibility in the use of federal economic development funds disbursed during the COVID-19 pandemic. It was incorporated into the Moving Forward Act which was passed by the US House of Representatives in July.