Oceanside CA— The Oceanside City Council Wednesday, during a special meeting unanimously approved taking bold steps toward implementing a $3 Million Business Relief Fund. Direction was given to staff to have program ready for implementation and final approval in 21 days.
The $3 Million Relief Fund will be used to issue micro-loans ranging from $10,000 to $20,000 to help local small businesses retain employees and stay afloat amid various federal, state and local public health orders aimed at reducing the spread of COVID-19.
The program will be open to businesses that can show they have sustained economic hardship due to COVID-19, have a city business license and have been in operation for at least six months. “COVID 19 has unleashed an economic war on The City or Oceanside and our small businesses are on the front lines. Now is the time to go on the offense and support these struggling businesses and the thousands of employees they support” Councilmember Rodriguez said during Wednesday’s meeting.
Oceanside Small Business “Gap Funding” Micro Loan Program
- Fund size: 3 Million
- Funding Sources: Recalled Bonds, Measure X, Grants, FEMA or other Federal Aid, Private Sector
- Contributions Loan size:$10,000 or $20,000 (Can help 150 to 300 Oceanside businesses)
- Loan Terms:24 months Interest: 1st 90 days 0% interest and months 4 – 24 = 3 to 5% (Incentivizes repayment when SBA loan is received)
- Proof Business applied for SBA/DLAP
- 2018 Tax Return showing business revenue or 2019 P & L
- Licensed to do business in The City of Oceanside for minimum: 6 months
- Internal Revenue Service (IRS) Form W-9 •Provide proof of economic hardship due to COVID-19
- Applications processed in order received: Priority given to length of time in business, Veteran Owned Businesses and businesses with more employees
Businesses that are NOT eligible to request or receive financial assistance include:
- Lending and investment institutions and insurance companies
- Golf courses or gambling facilities
- Nonprofit entities
- Businesses engaged in any illegal activity per local, state or federal regulations with federal regulations taking precedence over local or state regulations.
- Home-based businesses
- Chain stores
- Businesses with more than 50 Full-Time Equivalent (FTE) employees as of Feb. 28, 2020.
Community Partner Assistance:
- Oceanside Chamber of Commerce – Help with pre screening
- Main Street Oceanside – Help with prescreening
- Oceanside Small Business Development Center – Help with SBA applications