According to statistics from an analysis of unemployment in San Diego County, more than 80 percent of small businesses have been negatively affected during the coronavirus pandemic. These are the aids still available.
Nine out of ten small businesses in the San Diego County region have suffered negatively from the pandemic, according to the report from regional planning agency SANDAG.
The report indicates that among the most affected sectors were hospitality, restaurants, transportation, and entertainment. The hospitality industry accounts for 57% of available jobs, which decreased during the time of the state lockdown and the high spread of the coronavirus.
To combat falling revenues, the Small Business Administration (SBA) and other city and state agencies have created different types of programs to help businesses that suffered – and continue to struggle – to survive.
What happened to the Payment Protection Program (PPP)?
One of the immediate measures that were implemented after business closings was the Payment Protection Program (PPP), which authorized loans to businesses so that employees will continue to receive their salary during the pandemic crisis.
“The SBA is a front-line agency working to create an inclusive economy, focused on reaching communities of women, minorities, low- and moderate-income, rural, and other underserved communities in significant ways.” Said the senior advisor to the SBA. SBA, Michael Roth.
According to the SBA, more than 76% of loans were claimed by small businesses in the United States. In San Diego County, 55,823 businesses, schools, nonprofits, and religious institutions received $ 6.1 billion in loans, with the largest amount of $ 4.4 billion being distributed among 7,746 local businesses.
Unfortunately the PPP is no longer accepting applications, but those businesses that applied and received the funds can apply for loan forgiveness. If they show that they used the majority of the loan to cover payroll-related expenses, or business expenses (like rent), part of the loan could be forgiven. For information on how to apply see this link: PPP Relief
Aid still available for businesses
If you were unable to apply for the PPP loan, there are still other options available for businesses in need of financial assistance.
COVID-19 Economic Damage Disaster Loan (EIDL):
This federal loan program supports small business recovery from the economic shocks of the COVID-19 disaster by providing affordable and hassle-free capital for the borrower. To see the most frequently asked questions visit this link.
What it offers: Low interest loan (3.5% or 2.75% for non-profit businesses), fixed and long term to help overcome the effects of the pandemic, providing working capital to cover operating expenses.
The loan term is 30 years, with the first two years deferred. The high loan amount is up to 2 million.
To submit your application, visit this link: https://covid19relief.sba.gov/
Small Business Stimulus Grant
The Small Business Stimulus Grant Program is funded by the Board of Supervisors with federal funds allocated by the CARES Act and the County General Fund. Grant funding provides financial assistance to help businesses and nonprofits affected by COVID-19. Financial assistance will be allocated to eligible and qualified small businesses and nonprofits with final award recommendations made by individual district offices based on availability of funds, program guidelines, and submission of all required information. and supporting documentation.
Submit your application.
The San Diego Foundation Grants
The San Diego County COVID-19 Small Business and Nonprofit Loan Program (SBNLP) is a collaborative initiative designed to provide low- or no-interest loans to small businesses and nonprofits and assist in the economic recovery of the coronavirus region. This loan program was launched by San Diego County Supervisor Nathan Fletcher in collaboration with the San Diego Foundation, Mission Driven Finance, Accion Serving Southern California (now Accessity), San Diego & Imperial Small Business Development Center Network and California Southern Small Business Development Corporation.
By Rommel Ojeda