Carlsbad Approves $5 Million Package For Struggling Local Businesses
The Carlsbad City Council has approved a $5 million economic revitalization package to help businesses affected by the COVID-19 pandemic, and will accept applications for the relief Wednesday through May 25.
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 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, a city statement said.
Businesses interested in the loans can reach out to email@example.com with questions and for applications.
Micro loans are available for businesses with gross revenue of $2 million or less and 15 employees or fewer. The loan amounts will be between $5,000 and $10,000.
Small business recovery loans are available for businesses with gross revenue of $3 million or less and 50 or fewer employees with loan amounts between $10,000 and $25,000.
The city will contract with a third-party organization specializing in these kinds of loan programs, officials said.
The council approved other business support Tuesday night, including $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 and $250,000 to be held in contingency for future council direction.
On April 7, the council temporarily suspended evictions of commercial tenants who can't pay rent due to the 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.