In support of small businesses affected by the COVID-19 public health pandemic, the City of Carlsbad is accepting small business loan applications, totaling $4.4 million in micro loans and small business recovery loans directly to Carlsbad small businesses. The loan support is a majority of a $5 million economic revitalization package to help businesses affected by COVID-19.
To qualify for the loans, businesses must hold a valid City of Carlsbad business license and be in good standing with the city. Applicants who have already applied for federal assistance may not use city loan money for costs covered by the federal assistance. Loans should be used for operational expenses such as rent, payroll, mortgage interest and utilities.
New - Expanded eligibility
Businesses with a valid City of Carlsbad business license that have been operating at least six months may now be eligible for the loan program. Previously the cutoff date for having a city business license was April 1, 2020.
Businesses may now receive both types of city loans, a small business microloan and a small business recovery loan.
The maximum amount of the small business recovery loan has been increased from $25,000 to $50,000.
Businesses with gross receipts or revenues up to $5 million may now be eligible for the small business recovery loans. Previously the limit was $3 million. This change will allow around 150 additional businesses to become eligible, if they also meet other criteria.
All businesses receiving city loans must be in full compliance with the health orders.
For businesses with gross revenue of $2 million or less and 15 employees or fewer.
Loan amounts $5,000 to $10,000
First payment could be deferred for up to 180 days
0% interest if paid back within 6 months
1% interest if paid back within 12 months
2% interest if paid back within 30 months
Small business recovery loans
For businesses with gross revenue of $5 million or less and 50 or fewer employees
Loan amounts $10,000 to $50,000
The first payment could be deferred for up to 180 days
2% intertest if paid back within 12 months
3% interest if paid back within 60 months
Businesses that meet eligibility criteria may now apply for multiple loan products – meaning both the microloan and recovery loan. Businesses that previously applied for a product, may reapply for additional funding.
Other business support as part of the $5 million revitalization package includes:
$250,000 for a joint marketing strategy in partnership with the Carlsbad Chamber of Commerce, Carlsbad Village Association and Visit Carlsbad to promote Carlsbad tourism and businesses
$50,000 for mediation and renegotiation services for landlords and tenants
$50,000 to provide rent relief to those who lease city property
$250,000 to be held in contingency for future City Council direction
The city’s business revitalization programs were developed by an ad hoc city council economic revitalization subcommittee, which has worked with local businesses to understand and respond to their needs.
On June 10, the city also extended the opportunity for businesses to activate public space with the temporary use of private parking lots and public sidewalks during the COVID-19 physical distancing protocols. Private property permits will be valid for one year from the date of issuance or until the state and county health offices release businesses from the coronavirus physical distance protocols or impost new restrictions/limitations, whichever come first.
On April 7, the City Council temporarily suspended evictions of commercial tenants who can’t pay rent due to the COVID-19 public health emergency. To qualify, a commercial tenant must have been current on rent when the statewide emergency was declared on March 4 and notify the landlord in writing prior to rent being due or up to 10 business days after. The tenant also must be able to prove that the inability to pay is related to the COVID-19 emergency’s effect on the tenant’s business. The tenant will still be responsible for paying the back rent plus any late fees.