City of Carlsbad Approves $4.4 Million Business Loan Program
Blog Post - May 6, 2020
Category: What's New
The Carlsbad City Council has approved a $5 million economic revitalization package to help businesses affected by COVID-19. The majority of the funding, $4.4 million, is for micro loans and small business recovery loans directly to Carlsbad small businesses.
To qualify for the loans, businesses must hold a valid City of Carlsbad business license as of March 1, 2020, and be in good standing with the city. Applicants who have already applied for federal assistance may not use city loan money for costs covered by the federal assistance. Loans should be used for operational expenses such as rent, payroll, mortgage interest and utilities
For businesses with gross revenue of $2 million or less and 15 employees or fewer.
Loan amounts $5,000 to $10,000
First payment could be deferred for up to 180 days
0% interest if paid back within 6 months
1% interest if paid back within 12 months
2% interest if paid back within 18 months
Small business recovery loans
For businesses with gross revenue of $3 million or less and 50 or fewer employees
Loan amounts $10,000 to $25,000
The first payment could be deferred for up to 180 days
2% interest if paid back within 12 months
3% interest if paid back within 30 months
Applications will be available for both loan programs no later than May 25. The city will contract with a third-party organization specializing in these kinds of loan programs.
Other business support approved includes:
- $250,000 for a joint marketing strategy in partnership with the Carlsbad Chamber of Commerce, Carlsbad Village Association and Visit Carlsbad to promote Carlsbad tourism and businesses
- $50,000 for mediation and renegotiation services for landlords and tenants
- $50,000 to provide rent relief to those who lease city property
- $250,000 to be held in contingency for future City Council direction
The city’s business revitalization programs were developed by an ad hoc city council economic revitalization subcommittee, which has worked with local businesses to understand and respond to their needs.
On April 7, the City Council temporarily suspended evictions of commercial tenants who can’t pay rent due to the COVID-19 public health emergency. To qualify, a commercial tenant must have been current on rent when the statewide emergency was declared on March 4 and notify the landlord in writing prior to rent being due or up to 10 business days after. The tenant also must be able to prove that the inability to pay is related to the COVID-19 emergency’s effect on the tenant’s business. The tenant will still be responsible for paying the back rent plus any late fees.
For more information about the loan program and other business support, please email firstname.lastname@example.org.