MAYOR PROPOSING MAJOR INVESTMENT OF FEDERAL CARES ACT FUNDING TO SUPPORT SMALL BUSINESSES AFFECTED BY PANDEMIC
Black & Magazine Newswire
San Diego – Continuing to take steps to provide relief to San Diegans affected by COVID-19, Mayor Kevin L. Faulconer today announced that resources made available to San Diego small businesses will now top $20 million following the Mayor’ decision to direct $13 million in federal CARES Act funding to help small businesses get back on their feet.
“Small businesses are the lifeblood of San Diego’s economy and they need our help now more than ever,” Mayor Faulconer said. “The Small Business Relief Fund has delivered financial assistance to hundreds of businesses so far, and the work has only just begun. This new funding will go to even more businesses as they plan for the reopening of our economy.”
This week Mayor Faulconer released a revised Fiscal Year 2021 budget proposal that prioritizes federal CARES Act stimulus funds for small businesses, homeless services, and childcare for frontline workers. The proposal calls for using approximately $13 million for small business relief.
Created in March by Mayor Faulconer, the City’s Small Business Relief Fund provides loan and grants to help local employers sustain operations, retain employees and address reductions in consumer demand. More than 10,000 business owners submitted applications for relief during the first few weeks, far exceeding the initial resources available. The Mayor has since grown the fund as part of a broader economic relief package and announced additional private contributions from corporate donors and generous San Diegans.
Financial assistance made available through the fund ranges from $2,500 to $10,000 and will be allocated to eligible small businesses based on the availability of funds and program guidelines. The City is broadening eligibility criteria to allow more businesses to qualify. To be eligible, businesses must:
- Employ less than 100 full-time equivalent employees
- Have a City of San Diego Business Tax Certificate
- Provide documentation that shows the business has been operational for at least six months
- Provide proof of economic hardship due to COVID-19
- Not have engaged in any illegal activity per local, state or federal regulations
Together with the Cal Coast Cares Foundation and San Diego Grantmakers, the City has awarded more than 200 businesses with grants and loans. The evaluation of applications and distribution of funds is ongoing. The deadline to submit applications for economic relief has closed and the funds announced today will be made available to businesses who have already applied. The City Council will consider this proposal in the coming weeks.
“The response to the Small Business Relief Fund has been overwhelming,” said Christina Bibler, the City’s Economic Development Director. “The additional funds will help so many small businesses throughout the City of San Diego to continue to operate during this uncertain economic time.”
More information on the State of California “Stay At Home” order, including what’s closed, what’s open and which industries are exempted by the state can be found on the California Covid-19 response website.
For information regarding COVID-19 cases and directives from the County of San Diego public health officials, please visit www.coronavirus-sd.com.
For the latest City operational updates and steps the public can take to help reduce the spread of the disease, please visit sandiego.gov/coronavirus.