MONTEREY COUNTY, Calif. (KION) Monterey County and Cal Coastal announced that they are teaming up to create an emergency microloan fund for local small businesses affected by COVID-19.
The County's Economic Development Department is proposing to set aside part of its federal loan funds for the COVID-19 microloan fund. The loans can be up to $25,000 at a reduced interest rate with a term of up to 5 years. Payments could also be deferred for up to 9 months, but loans will be determined based on how much the borrower is able to pay.
Cal Coastal said the underwriting, approval and closing process will be streamlined and designed to get the money to businesses in need faster.
About $661,000 is available for lending from the county. It could help about 25 businesses, and the program is first come, first serve. The County has also set some funds aside for South County businesses that apply by May 15.
To be eligible, businesses:
- Must be located in Monterey County.
- Should have between 2 and 10 employees.
- Should have annual revenues that do not go above $2,000,000.
- Be an operating business and not a passive real estate entity.
- Have been in business for at least a year and be able to provide a 2018 Federal Tax Return and interim financial statements.
- Must have a feasible plan to recover after the disruption to business.
- Be current on federal income taxes.
Cal Coastal said Gonzales, Greenfield and Salinas have also showed interest in creating loan funds to help businesses within the cities.
To learn more, go to www.calcoastal.org or call 831-424-1099.