Imperial Valley Press

Council approves CDBG loan program

- By JULIO MORALES Staff Writer

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.

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