Grijalva introduces bill to help border businesses
SAN LUIS, Ariz. – Economic developers here and Somerton are welcoming legislation introduced by U.S. Rep. Raul Grijalva aimed at helping small businesses on the border hurt by the pandemic.
Introduced last month in the U.S. House of Representatives, the Border Business COVID-19 Rescue Act would provide small businesses loans of up to $10,000 that would not require repayment, and loans of up to $500,000 for eligible expenses.
The COVID-19 pandemic has hurt the businesses in part by prompting closures of the border, preventing shoppers from Mexico from entering the country. Many border businesses depend for most of their trade on Mexican consumers.
“It would be very beneficial, first because the businesses would have access to non-repayable loans, and then because the programs the congressman is proposing are the first ones specifically for small businesses in the border area,” said Jenny Torres, economic development manager for the city of San Luis.
The bill would distributed the funds through the Small Business Administration Emergency Injury Disaster Loan Program. It would allow the SBA to forgive up to 100 percent of the awarded loans and specifically targets funds to qualifying small border businesses with adjusted gross incomes under $500,000 within 25 miles of a U.S. border.
“Vibrant cross-border traffic is the lifeblood of the border economy,” said Grijalva, a Tucson Democrat whose district includes south Yuma County. “Border closures under the public health emergency have uniquely devastated these business corridors that have existed for generations. Many border businesses saw little or no support from previous relief programs, and this bill will ensure that resources go directly to those that have suffered disproportionately.”
Somerton Economic Development Director Hector Tapia said the bill, if passed, would provide much-needed relief for businesses in his city, many of which struggle to pay rent for their premises.
“That is the main impact of the pandemic that we see on the businesses,” Tapia said. “We were able to distribute $100,000 in loans with the second COVID-19 stimulus that the federal goverment gave, but the program the congressman is proposing includes assistance that doesn’t have to be paid, and that is very good for the businesses.”
Torres said businesses in San Luis that offer hard goods and services have been hit hardest by the pan
demic, while restaurants and business that offer food products have adapted more easily.
“The impact of the pandemic has been very diverse on businesses in San Luis,” she said. “We see many that have adapted to the situation, above all the food businesses. But others have had to close temporarily. We hope this bill is approved and that they received the help they so need.”