Small Business Assistance Updates
This content below is from the office of Mitchell O'Farrell, Councilmember, 13th District, Los Angeles:
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Hello, I hope this finds you well,
As many of you know we had a marathon City Council meeting last Friday, that lasted 11 hours. Many of you contacted our office regarding impacts on small businesses, in particular 1.) the paid leave, and 2.) the right to recall, as well as prohibitions on evictions of commercial and residential tenants impacted by the COVID-19 pandemic.
The "paid leave" item was amended to be for businesses with 500 employees or more, and the "right to recall" was continued to allow City Attorney and analysts to report back on the impacts this policy would have. Stay tuned for next steps.
Below is what may be helpful information regarding financial aid available locally, and at the State & Federal levels. This is just an overview, and more will become available on a day to day basis.
City of Los Angeles "Micro-Loan" program
These $5,000 to $20,000. loans can be interest free depending on the length of the loan, info below:
https://ewddlacity.com/index.php/microloan-program
Federal Stimulus Package:
The financial stability of the nonprofit sector and small businesses remains an ongoing concern due to the growing impact of the COVID-19 pandemic. But there are new streams of funding that can help under loan opportunities that provide access to capital to meet the most urgent needs. Nonprofits and businesses with 500 employees or fewer that need help with payroll, rent, or mortgage expenses due to the COVID-19 crisis are eligible to apply for loans under the $349 billion Paycheck Protection Program (PPP) authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress last week. The U.S. Department of the Treasury and the U.S. Small Business Administration (SBA) have issued guidelines. Find a fact sheet on PPP here.
SBA notes that SBA, “funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).”
Applications will be accepted beginning Friday, April 3. Members are encouraged to apply as soon as possible, because funding is limited.
As SBA lenders expect a high volume of applications, members are encouraged to work with a lender if there is an existing relationship.
Find a list of the top 10 SBA lenders by volume here.
Find helpful nonprofit guides to the CARES Act here and here.
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