County ponders second wave of loans

EL CENTRO — The Imperial County Board of Supervisors in less than two weeks will decide whether to launch a second wave of loans to small businesses and how best to structure it.

Like the first round of loans, the loans would come from $500,000 taken from the Community and Agriculture Benefit Fund accounts.

The supervisors on Tuesday appeared to favor greenlighting the second wave of the Business Stabilization Lending Program but with different regulations than in the first round.

In the first wave of the stabilization plan, 50 small businesses were approved for low-interest loans up to $10,000.

County CEO Tony Rouhotas Jr. said he received an email from a county employee telling him her business was shut out of the first wave because county employees were not allowed to participate.

If there were to be a second wave, Rouhotas proposed changing the requirement from an employee to a decision maker for the county.

Agricultural Commissioner Carlos Ortiz said his advisory board met and recommended that prior to any consideration, the first wave of loans should be completed.

The advisory committee also recommended, if there is a second wave, that its share of the $500,000 be a proportionate share, starting with a minimum of $50,000.

Currently, the Agricultural Benefit Fund has a balance of about $7.7 million, and the Community Benefit Fund has an approximate balance of $10 million. However, these balances fluctuate depending on loan and payment activity.

New solar projects provide a one-time payment to the Agricultural Benefit Program. Companies have the option to either make a one-time lump sum or 30 annual payments to the Public Benefit Program.

The solar development has slowed down in recent years so payments to the funds have decreased as a result

Supervisor Ray Castillo said he wanted both benefit funds to share equally in the cost if there is a second wave.

Castillo said he realizes a lot of people applying for these grants are not agriculture related, but added these low-interest loans impact all local businesses.

“The cost of the grants should be shared with the community and ag,” he said. “It’s only fair for it to be 50 percent for Ag and 50 percent for community.

Supervisor Ryan Kelley was informed the first round loans of the stabilization program has not yet been distributed and

questioned why.

“There is more need, and there is need now,” Kelley said. “Are we waiting for them to reopen (before) distribution? The timing is significant (for businesses).”

Putting a date and time on when the funds are going to be available would be a help to the businesses.

Supervisor Jesus Eduardo Escobar said it’s important the county fully completes the first 50 loans before bringing another stabilization plan back to the board with modifications.

Supervisor Chairman Luis Plancarte wanted

to know if the 10 or so businesses left out in the first wave would have to reapply if a second wave is approved.

Rouhotas said they would not be wiped away, so the 10 businesses would remain in the queue.

“I would hate to give people a false hope,” Plancarte said. “We should be careful on how it goes.”

Castillo agreed the county needs to complete the process for the first wave before deciding what to do next.

“Once we exhausted the first $ 500,000, we can look at what we need,” he said.