Title
Approve an amendment to the Small Business Revolving Loan Fund Administrative Plan to incorporate an emergency Microloan Program to mitigate the economic impact of the COVID-19 public health emergency.
Report
RECOMMENDATION:
Approve an amendment to the Small Business Revolving Loan Fund Administrative Plan to incorporate an emergency Microloan Program to mitigate the economic impact of the COVID-19 public health emergency.
SUMMARY:
The County of Monterey has managed a Small Business Revolving Loan Fund (SBRLF) since 1989. The initial SBRLF was established to address specific issues related to small business access to capital and expanded in 1993 to provide additional financial assistance to businesses impacted by the closure of Fort Ord. The proposed changes to the SBRLF Administrative Plan will provide additional flexibility to provide loans to small businesses that are struggling as a result of the Shelter in Place Order and the attendant decline in business activity. It is recommended that the County amend it SBRLF Administrative Plan to meet the needs of businesses during COVID-19 crisis. The SBRLF currently has $661,000 available to loan and it is expected that the program will be able to assist 25 businesses.
DISCUSSION:
Since the Shelter in Place Order went into effect there has been a marked decrease in business activity. These and many other businesses have been hit with unanticipated loss of revenue that would ordinarily help them keep current with their suppliers, landlords and payroll. While the federal government, primarily through the Small Business Administration (SBA), has been developing programs to help many businesses, the development of the requisite program guidelines has lagged behind the need. Additionally, many SBA programs require a participating bank to implement the programs at the local level. All of this has slowed the delivery financial assistance and imperiled the outlook for many businesses to reopen once the publi...
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