County Approves $5M in Small Business Loans for Unincorporated Areas
Read the full article by Sophia McCullough on NBC San Diego's website here.
Small businesses affected by the coronavirus pandemic in San Diego County's unincorporated areas will soon have access to $5 million in small business loans.
The San Diego County Board of Supervisors unanimously approved Tuesday the $5 million recovery loan program, partnering with The San Diego Foundation.
The $5 million fund is also the first contribution to a recently announced San Diego County COVID-19 Small Business and Nonprofit Loan Program (SBNLP), a public-private partnership formed by County Supervisor Nathan Fletcher and The San Diego Foundation.
The San Diego Foundation – through the SBNLP – and its partners will ensure the loans are backed by the state’s Small Business Loan Guarantee Program or a comparable program, the county said.
The SBNLP will further provide no-to-low interest loans for businesses financially impacted by the pandemic. The program can access available disaster recovery loans with approved 95% guarantees on the principal, Fletcher announced.
It is anticipated a variety of local governments, philanthropists and other entities will contribute to this fund, Fletcher said.
For loans over $50,000, SBNLP collaborators plan to use philanthropic and subordinate funds to leverage additional, low-cost funding available from CDFIs and other local banking institutions.
“We designed this program to allow public and private entities to donate money that our strategic partners can leverage using their technical expertise, staff capacity, balance sheets and resources to rapidly inject liquidity into the local San Diego County small business sector," Fletcher said.
The loan servicing will be managed through CDFIs Accion San Diego and LISC San Diego, The San Diego Foundation, and Mission Driven Finance.
Other finance partners include the California Southern Small Business Development Corporation, and San Diego & Imperial Small Business Development Center (SBDC).