Sacramento small businesses selected for city’s coronavirus economic relief loans
City of Sacramento officials has selected 101 small businesses to receive no-interest loans from a $1 million COVID-19 economic relief fund created as companies throughout the state face significant financial losses during the coronavirus pandemic.
Last month, the city began accepting applications for the emergency relief fund, which will distribute the loans of up to $25,000 for small businesses.
Officials announced in a news release Thursday that the city received slightly more than 1,400 completed applications and more than 2,500 draft applications. The qualified applicants were selected by city staff on a first-come, first-served basis after the applicants submitted all required information and supporting documents.
The loans can be used to cover the day-to-day operating expenses of the business, such as payroll.
The businesses that received the loans provide more than 700 jobs and are located throughout Sacramento’s City Council districts, including newly opened and long-standing restaurants, retail business with store fronts, daycare providers and nonprofits, city officials said. They include 49 micro businesses and 52 businesses; and 12 are childcare and six nonprofits.
Sacramento Mayor Darrell Steinberg said he was happy these small businesses “can now breathe a little easier.”
“Given the magnitude of the economic disruption caused by COVID-19, this $1 million is a solid start, but just the beginning of what government at all levels will be doing to protect our businesses, workers and nonprofit organizations,” Steinberg said in the release.
Micro businesses with five or fewer employees received $5,000, according to city officials. Businesses with six employees or more received loans determined by the number of full-time equivalent employees, with a maximum amount of $25,000. The city is working with Five Star Bank to distribute the loans starting next week.
The small business loans are part of a city campaign, Donate4Sacramento, to raise money to help people in four categories: families in need of childcare, meals and rental assistance; small businesses in the form of no-interest loans; services for the homeless; and nonprofit support.
As of Thursday evening, pledge amounts and donations to the Donate4Sacramento fund totaled more than $700,000.
The city also adopted a temporary ban on evictions for residential and commercial tenants, waived delinquent utility penalties and set up a childcare program for first responders, health care workers and essential city employees.
“We knew we needed to act quickly to throw a lifeline to our local small businesses, artists and nonprofits,” Councilman Steve Hansen said in the release. “Our economic relief loan program in hand with our temporary commercial eviction ban should help the thousands of city businesses that need help.”
The eligibility requirements for the business loans can be found on the city’s website, along with more information about resources for businesses and employees hit hardest by the COVID-19 crisis.
This story was originally published April 2, 2020 at 7:04 PM.
