Council OKs new biz loan guidelines
The Arcata City Council on Wednesday approved by a 4- 0 vote guidelines for a loan program to help local businesses amid the coronavirus pandemic.
The “business assistance job retention loan program,” similar to the city’s business resiliency loan program, will allow the city to use block grant funding from the state department of housing and urban development to give out loans to local businesses struggling to stay af loat amid the pandemic.
The loans will be designated for businesses to use in retaining employees, covering operating expenses, and for equipment and supplies necessary to protect employees and customers from CO
VID-19.
The loans will be forgiven and made into grants for businesses that successfully retain employees throughout the pandemic. The loan money does not need to be used to pay an employee directly for businesses to qualify. A business could install automatic doors to facilitate a safer flow of customers in and out of its building with the loan money, and if such an action increases business and allows the business to retain its employees, the loan can be forgiven and changed to a grant.
“This program is designated for that little bit of extra help a business needs to get through these times,” community development director for the city David Loya said.
The city has about $300,000 in state and federal block
“This program is designated for that little bit of extra help a business needs to get through these times.” — David Loya, community development director for the city of Arcata
grants to use on the new loan program. The state department of housing will need to OK the use of its grant funding for Arcata’s specific program. City manager Karen Diemer said the city expects to hear from the state on its decision in January.
Loya said the program is designed to help restaurant, retail, hospitality, and manufacturing businesses, however, any business in Arcata can apply for loan funds. Loya said the city expects most loan requests will be for around $ 25,000, and that the maximum a business can apply for is $140,000.
City modifies emergency ordinance
By a unanimous yes vote, the council changed the duration of its declaration of a local emergency ordinance from 14 days to 60 days. The change to the ordinance, according to Diemer, was done to save the city time. Instead of having to vote on an extension every two weeks, the council will now have to do so once every two months.