The City of Sacramento has selected 101 local businesses to receive zero-interest loans from its $1 million COVID-19 economic relief fund. Those 101 businesses provide over 700 jobs in the City.
“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 non-profit organizations,” said Mayor Darrell Steinberg. “I’m happy that 101 small businesses in Sacramento can now breathe a little easier.”
This COVID-19 economic relief fund was established as part of the City’s efforts to mitigate the financial effects of the disease on our community. The City also established a temporary ban on evictions for residential and commercial tenants, waived delinquent utility penalties and set up an essential worker childcare program for first responders, health care workers and essential City staff.
“We knew we needed to act quickly to throw a lifeline to our local small businesses, artists and non-profits,” said Councilmember Steve Hansen. “Our economic relief loan program in hand with our temporary commercial eviction ban should help the thousands of City businesses that need help. We’re tirelessly working with our federal partners, local chambers and other businesses partners to provide immediate help and resources to those in need.”
The City received 1,402 completed applications with an additional 2,545 draft applications. The businesses were selected by City staff on a first-come, first-served basis to qualified applicants upon submission of all required information and supporting documents. Micro businesses with five or fewer employees received $5,000. For businesses with six employees or more, the loan amount is determined by the number of full-time equivalent employees with a maximum loan amount of $25,000.
The City is working with Five Star Bank to disperse the loans starting next week. The funds may be used to cover the day-to-day operating expenses of the business such as payroll.
The selected businesses are geographically located all over the City of Sacramento and include newly opened and long-standing restaurants, retail business with store fronts, day care providers and non-profits. The 101 businesses include 49 micro businesses and 52 businesses. Of those numbers, 12 are childcare and six non-profits. It includes businesses from all the city council districts.
Find a full list of proposed selected businesses and amounts here. Please note that this is a proposed list of businesses and amounts but may change as they go through the loan process with the applicants.
Eligibility requirements for the businesses can be found here.
Find additional COVID-19 resources for businesses and employees here.