The County Board of Supervisors voted unanimously Tuesday to approve a $5 million loan program to help small businesses in the unincorporated area that have suffered losses because of COVID-19. The program will be overseen by the San Diego Foundation.
The loans are intended to allow these businesses to stay afloat and recover quickly once the state’s stay-at-home health order is lifted.
Unincorporated area businesses that employ fewer than 50 people may qualify for the no- or low-interest loans. Applicants could request up to $50,000 and pay no more than 2% interest for a term of up to two years. Businesses that can retain and create jobs will have priority.
The board action allows staff to set up an agreement with the San Diego Foundation to distribute the funds. The Foundation will ensure the loans are covered by the State of California Small Business Loan Guarantee Program or a comparable program.
Loans paid off within 60 months are returned to the County as well as 95% of any defaulted loans.
Applications for the loans could begin as soon as next month.
