The Carlsbad City Council approved revisions and the extension of terms for its COVID-19 small business loan program, allowing more businesses to access financial assistance when they need it most and to further support loan recipients who have ongoing impacts from state and county health orders.
Extending the maximum micro-loan term from 18 months to 30 months
Extending the maximum small business loan term from 30 months to 60 months
Allowing for one extension of the repayment deferral in a way to help reduce default risk
Carlsbad businesses can apply for one or both types of loans outlined in the city’s $5 million economic recovery and revitalization initiative including:
Micro-loans - $5,000 to $10,000
For businesses with gross revenue of $2 million or less and 15 employees or fewer
Small business recovery loans - $10,000 to $50,000
For businesses with gross revenue of $5 million or less and 50 employees or fewer
A total of 82 businesses have received $1,660,000 in loans so far. Four applications are in process.
62 loans are currently in repayment, meaning their automatic six-month deferment period has ended. Two loans have been fully repaid and there have been no defaults. All businesses receiving city loans must be in full compliance with the health orders.
City Council also considered other financial assistance programs but did not approve any at this time.
Instead, staff will be bringing back a discussion about inclusive ways to support Carlsbad non-profits at the City Council meeting on May 11.
The City of Carlsbad was the first city in the region to establish a comprehensive economic revitalization initiative, dedicating $5 million toward measures to help local businesses get through the pandemic. More than a year into the pandemic, the city continues to provide one-on-one support for businesses and collaborate with the Carlsbad Chamber of Commerce and Carlsbad Village Association on regular joint communication to all Carlsbad businesses.