San Diego Offers Loans to Help Businesses Adapt to COVID-19 Restrictions
SAN DIEGO (CNS) – San Diego announced a loan program on Tuesday to help business owners adapt to changing restrictions and protocols during the COVID-19 pandemic.
3% interest loans ranging from $ 25,000 to $ 95,000 are intended for businesses eligible under the CARES Act Revolving Loan Fund. The money can be used to cover expenses such as furniture, safety equipment, website development, and digital marketing.
“With the pandemic, our goal as a city is to do whatever we can to help small businesses survive,” said Mayor Todd Gloria. “We hope that by providing financial assistance, we can help these businesses with a much-needed lifeline during this time of uncertainty.”
The city’s Department of Economic Development provides the loans with funding provided by the Economic Development Administration of the United States Department of Commerce.
Non-repayable term loans are intended to help entrepreneurs adapt their business models to operate under pandemic restrictions while maintaining or creating jobs. The city can only make RFL loans that are reasonably expected to be repaid in full.
“We hope that many of the eligible businesses will take advantage of this unique opportunity,” said Christina Bibler, city director of EDD. “We recognize that many businesses are grappling with payroll, overhead and other expenses as they try to adapt to changes in this new environment. As a city, we want to support them to help them change their business as they weather this economic storm in the hope that brighter days are ahead. ”
RFL loans have a fixed annual interest rate of 3% and have a general term of 54 to 78 months, depending on the size and use of the loan. No payment or interest is accrued for the first six months.
Financial assistance will be provided to qualified small businesses based on availability of funds, program guidelines, and submission of all information and supporting documentation required for the preliminary emergency loans online application and subscription phases.
Priority will be given to small businesses in underserved communities or those operating in these four key economic sectors and industries:
– manufacturing and innovation, including biotechnology and medical devices, clean technologies, electronics and telecommunications, and food and beverage;
– international trade and logistics;
– military, including defense, maritime and aerospace; and
– tourism, including conventions and visitors.
Businesses can check if they are eligible for loans by visiting sandiego.gov/CARESActRLF.