City bolsters its loan programs
Addressing COVID-19 impacts, both programs offer no-interest loans if repaid by Dec. 2023, or at 3% interest if not
MARINA >> The city of Marina is providing more relief for a longer time as it shores up two programs to help its business community and residents impacted by the COVID-19 pandemic.
The city of Marina has approved an extension of its Small Business Loan Program allocating an additional $400,000 from the city’s general fund for a total of $550,000 to support local small businesses that are struggling to survive during the pandemic, according to Marina City Manager Layne Long.
The city also approved an extension to the Residential Loan Program providing another $100,000 from the city’s coffers for a total of $150,000 to support residents harmed by COVID-19 impacts.
Both loan programs were authorized by the Marina City Council in April of this year. On Dec. 17, the council increased funding, extended the life of the programs and amended other terms to make loans available to more businesses and residents.
“The City Council determined that there would be a negative impact to the city’s tax base if the business loan program had not been approved and there would be negative impacts to the health, safety and welfare of the residents had the residential loan program not been
approved,” said Assistant City Manager Matthew Mogensen.
To date, 15 Marina businesses have received loans totaling
$127,300 and 12 of the city’s residents have received loans totaling $20,100, said Mogensen.
The city’s original Small Business Loan Program was allocated $150,000 and set to expire at the end of this year, but the new extension takes the program to March 31, 2021, while providing the additional money.
According to Long, the Small Business Loan Program is targeted to meet the needs of many small Marina businesses whose operations have been either closed or severely limited by the health orders from the state, the county and now the most recent stay-at-home order that went into effect Dec. 13.
“These businesses are struggling to survive and
are facing financial impacts, potential employee layoffs or business closures,” said Long in a press release. “The Small Business Loan Program will provide a lifeline to many small businesses that can use the no-interest loan up to Dec. 31, 2023 to bridge the gap of revenue needed while tapping into federal and state grant funds or to sustain business operations until the COVID-19 impacts begin to subside and businesses are able to operate again under more normal circumstances.”
The Small Business Loans program is available until March 31, or until its funds have been depleted. Loans are available up to $15,000 at no interest if repaid by Dec. 31, 2023. For those that have already received a loan
from the city, an additional $5,000 can be obtained. To be eligible for a loan, the applicant must have a loss of income due to COVID-19 impacts and incurred expenses. Applicants must operate out of a physical commercial location within the city limits, and currently have an active city business license as of Jan. 1, 2019. They also must have had 10 or fewer full- or part-time employees before March 1, 2020, or if a restaurant, 20 or fewer employees. The applicant must also have gross annual business revenue under $1 million.
Residential Loans are available until Jan. 31, 2021, or until the funds run out, with loans of up to $3,500 available at no interest if repaid by Dec. 31, 2023. Applicants must be a resident of the city of Marina, or home occupation in the city as of Jan. 1, 2020. They must have a household income of less than 120% of the Monterey County median, adjusted for household size, and must have had economic damage due to the COVID-19 pandemic due to unemployment or reduction of hours.
Both the Small Business Loans and the Residential Loans will carry a 3% interest rate if not repaid by the end of 2023, according to Mogensen.
For more information and to apply for the loans, visit the city of Marina website at www.cityofmarina.org/973/ City-Loans-for- COVID-Impacts.