Supervisors approve mini-grant program

EL CENTRO — The Imperial County Board of Supervisors has approved a $500,000 mini-grant program intended to help local small businesses cope with the impacts of the COVID-19 pandemic.

The funding will come from the county’s Public Benefit Program, which was established in 2012 and receives funding from solar projects in unincorporated areas of the county. That program is divided into the Community Benefit and Agricultural Benefit programs. Each of those programs will account for half of the mini-grant funding.

County CEO Tony Rouhotas Jr. said businesses through the Imperial County Business Stabilization Lending Program could request up to $10,000.

Kay Pricola, executive director of the Imperial Valley Vegetable Grower’s Association, advised supervisors in a letter the mini-grant program has IVVGA’s support on a one-time basis, as long as a third-party managed the program. In this instance, that would be County Treasurer and Tax Collector Karen Vogel.

Some items businesses will need when reopening include hand sanitizer, face coverings and gloves, all of which were unforeseen before the coronavirus shut down the economy.

The funds may also be used to cover shortterm working capital needs, like payroll, rent, routine real estate and equipment financing payments, utilities, or losses due to destabilizing events.

Rouhotas said the county is also looking at providing local businesses access to its vendors in order to make quantity purchases and possibly secure better pricing on certain supplies.

Supervisor Jesus Eduardo Escobar originally floated the idea of a loan program at a recent board meeting. Supervisors liked what they heard in the follow-up from Rouhotas.

“I support it,” said District 3 Supervisor Michael Kelley. “It’s well put together, and it is justified.”

Escobar pointed out the program would be six-month forgivable loan that need a personal guarantee.

The forgiveness clause would prorated at 20 percent for each full-time employee or worker who had been hired back or replaced.

For example, if a business has laid off five employees and had not hired even one of them back or replaced them within six months of the loan, the entire borrowed amount would have to be repaid.

To be eligible for the loan, the business must be in the agricultural, commercial, manufacturing/industrial or retail sectors.

The business must have demonstrated a hardship due to COVID-19 and be in good standing with the city and county, such as being current on utility bills and having no liens or judgments against it.

The loans will be available with up to two-year terms with an interest rate of 2 percent. They will be provided on a first-come, first-served basis.

“I am glad to see we are doing something about it,” said District 5 Supervisor Ray Castillo.