Council approves CDBG loan program
EL CENTRO – The City Council on Tuesday approved an amendment to its current Community Development Block Grant spending plan to incorporate an additional $333,375 to assist recovery efforts amid the pandemic.
Of that amount, a total of $200,000 in funds will go toward a loan program for eligible business community members that have been impacted by the COVID-19 pandemic.
The loans, of up to $10,000, would be made available for low- and moderate-income businesses that have five employees or less, and that count its owner as one of the employees.
Some of the loan program’s conditions could potentially allow for the loans to be forgivable, city Economic Development manager Stacy Mendoza told the council during a previous meeting
In addition to funding the loan program, the council authorized the use of $33,700 in CDBG funds to purchase infrared thermometers that would then be distributed to impacted businesses.
At a cost of about $85 per thermometer, the city anticipates obtaining about 300 of them, which would be distributed by the Fire Department on a first- come, first-served basis, Mendoza said.
The thermometers will not be available to large chain stores. An application process will be established once the thermometers become available and will be announced by the city.
Another $ 33,000 in CDBG funds will go toward purchasing personal protection equipment such as disposable masks and hand sanitizer that would be distributed to the city’s homeless population by the city’s code enforcement officers.
The remaining $ 66,675 of the CDBG allocation, made available through the Coronavirus Aid, Relief, and Economic Security Act, would cover the expenses of having city staff administer the grant funds.
The CDBG allocation is intended to specifically be used for activities that prevent, prepare for, and respond to the COVID-19 pandemic.
The $200,000 allocated for the loan program came at the request of the city’s Economic Development division, while the Community Development division requested $33,000 for PPE for the homeless, and the Community Services division requested $33,700 for the thermometers.
Previously, city staff had requested smaller allocations for the purchase of PPE and thermometers, but was ultimately directed by council to enhance those amounts after it was determined to be an appropriate use of the $16,000 in funds that remained unallocated from the overall $ 333,000 CDBG award.
The council had previously convened a series of public hearings that sought the community’s input regarding how the city’s $333,375 allocation could potentially be spent.
During its initial public hearing on May 19, a number of applicants had sought grants that ranged from $5,000, as requested by Imperial Valley LGBT Resource Center, to $44,000 from Spread the Love Charity, which was ultimately deemed ineligible since the non-profit is no longer located in El Centro.
A few of the various activities that some of the applicants had proposed were deemed ineligible for funding, since the CDBG funds had to be specifically spent on efforts to prevent, prepare for and respond to the COVID-19 pandemic.
After the council was advised of the applicants’ grant proposals, Councilman Jason Jackson said he was disappointed that none had appeared to address mental health and wellness issues related to the pandemic.
During the council’s May 29 public hearing on the matter, Councilman Tomas Oliva had suggested carving out $50,000 from the loan program to potentially provide rent and utility assistance for residents, but was unsuccessful in getting his colleagues’ support.
Mendoza indicated that the city was awaiting guidance regarding the loan program’s eligibility requirements from the U.S. Department of Housing and Urban Development (HUD).
The public has an opportunity to submit comments on the CDBG spending plan amendment until Monday. Following the public comment period, the amendment will be submitted to HUD for approval.