Seaside to provide ‘micro’ loans to businesses affected by COVID-19 – Monterey Herald

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SEASIDE – Small businesses on Seaside affected by the COVID-19 pandemic will soon be able to apply for loans of $ 2,500 to $ 5,000 through the city’s business micro-loan program.

“Staff are preparing the application form and will be posting it by the end of next week,” said Craig Malin, City Manager of Seaside.

Seaside’s Business Revolving Microcredit 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 Economic Development.

The loan program would use the $ 200,000 designated in the 2020-2021 budget for this purpose. City staff recommended that these loans be easy to obtain, that the administration of the program use as few human resources as possible, that the program help as many businesses as possible, and that it leverage the resources of its partners. community.

The program would provide loans of $ 2,500 to $ 5,000 with no accrued interest, or payments being required up to 90 days after the end of the statewide COVID-19 emergency order. All loans would have a repayment period of 36 months, or three years, with no prepayment or prepayment penalty. The interest would be a fixed rate of 3% and the program would be “revolving”, meaning that any payment received would be loaned to businesses in need of additional assistance. The program would continue to provide loans until at least a year after the emergency order is lifted.

Businesses primarily located and doing business in the Town of Seaside before January 31, 2020 would be eligible. The requirements would include positive cash flow in 2019 or for any period prior to January 31 that the business was open and operational, the business would be required to have an active and in good standing waterfront operating license, as well as being in good standing with California. State Council for Equalization.

The Town of Seaside is moving forward with the development of its COVID-19 Emergency Micro-Loan Program which provides loans of $ 2,500 to $ 5,000 to eligible businesses in the town. (James Herrera – Monterey Herald)

Businesses would be required to obtain technical assistance from the CSU Monterey Bay program and apply for funds through the Community Foundation / Monterey Peninsula Chamber of Commerce program with assistance in requesting 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 take advantage of other resources, so that they can be successful,” said Malin.

Monterey County recently received funding from the Coronavirus Aid, Relief and Economic Security Act to help businesses.

On Monday, the office of Representative Jimmy Panetta, D-Carmel Valley, announced that Monterey County has received a grant totaling $ 1,760,000 in funding for the COVID-19 Recovery and Resilience Project to help the county and its small businesses respond to the coronavirus.

Funding for the grant is allocated to municipalities through the Economic Development Administration of the Ministry of Commerce, in accordance with the CARES Act.

The $ 1.76 million investment will recapitalize the Monterey County Revolving Loan Fund with $ 1.6 million to meet the economic development needs of small businesses and entrepreneurs affected by the coronavirus pandemic and also provide 160 $ 000 to cover the costs 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 paid back, the Senate must pass HR 2, the Moving Forward Act, which includes the Revolving Loan Fund. Panetta’s Flexibility Act that would allow counties to reprogram these funds for other economic stimulus efforts as small businesses recover and pay off loans.

The Revolving Loan Fund Flexibility Act was introduced by Representative Panetta to provide communities with greater flexibility in the use of federal economic development funds provided during the COVID-19 pandemic. It was incorporated into the Moving Forward Act which was passed by the United States House of Representatives in July.


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