San Francisco to launch $ 10 million emergency relief fund for small businesses

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SAN FRANCISCO, CALIFORNIA – APRIL 01: A deserted Grant Street in Chinatown on April 01, 2020 in San Francisco, California. Officials in seven counties in the San Francisco Bay Area have extended the shelter in place until May 1 due to a coronavirus issue

The city of San Francisco on Thursday announced plans to create a $ 10 million small business relief fund to support small businesses affected by the coronavirus and the corresponding shelter-in-place orders, which have had a crippling effect on non-essential workers.

London Mayor N. Breed and Supervisors Sandra Fewer and Hillary Ronen, as well as the Office of Economic Development and Workforce, said they are committed to launching an emergency loan fund to small businesses to support small businesses facing sudden loss of income from COVID-19.

The fund would allocate $ 9 million for emergency loans and an additional $ 1 million to expand the COVID-19 Small Business Resilience Fund. The second fund has received more than 2,000 applications since its launch on March 11, the city said.

The Emergency Loan Fund will provide small businesses with up to $ 50,000 in zero interest loans. These loans will have a flexible repayment schedule and the terms will be determined on a case-by-case basis, depending on the repayment capacity of each borrower, the city said. Applications will be available by April 6. An online loan application portal is available to business owners at www.covid19relief.sba.gov.

“The shelter-in-place order – while absolutely essential for public health – requires companies to find a way to stay afloat,” Ronen said. “Small businesses in San Francisco employ hundreds of thousands of workers. They are the cornerstone of our economy and the soul of our neighborhoods. We cannot let them go.

The news from San Francisco arrived Thursday as California Governor Gavin Newsom also spoke to small business. He said small businesses would get an interest-free “bridging loan” sales / use tax up to $ 50,000 for businesses with taxable sales of less than $ 5 million.

He also said that California launched the onwardca.org website, which connects unemployed people with jobs.

Other efforts are also underway to help small businesses.

Oakland Wednesday says he will offer soon $ 300,000 in loans, with grants of $ 5,000 given to low-income small business owners and the grants can be used to pay rent and utilities, workers, unpaid debts and other immediate costs for operations.

Berkeleyside also reported that the city would pay a total of $ 3 million to the businesses involved and the companion Berkeley Relief Fund, made up of donations from individuals and businesses, will also hopefully donate $ 3 million and has so far raised $ 681,000.

The mayor of San Francisco noted that the shelter-in-place orders, which will last at least until May 3, are important in saving lives.

But not being able to work is also crippling for people and the economy.

“The steps we have taken to slow the spread of the coronavirus will save lives,” Breed said. “But it is a scary time for small businesses and workers as the impact of this pandemic is severe not only for public health, but also for our local economy and people’s livelihoods.

She said she knows money is a start and that “there is a lot more to do in the weeks and months to come to help our businesses and our workers get back on their feet.”

Last month, San Francisco set up a resilience fund to provide immediate help to small businesses with an initial investment of $ 1 million to provide more than 100 companies with grants of up to $ 10,000.

The fund announced Thursday will add an additional investment totaling $ 2 million to more than 200 small businesses in San Francisco neighborhoods that need immediate help.

IF YOU ARE INTERESTED: An online loan application portal is available for business owners at https://covid19relief.sba.gov/#/. The new paycheck protection program for businesses with 500 or fewer employees includes loans from existing SBA lenders of up to $ 10 million to cover fixed costs with eventual surrender terms. All qualifying businesses and nonprofits are encouraged to apply. OEWD, in collaboration with community organizations, is currently organizing a network of providers who provide technical assistance to support small businesses seeking to benefit from these resources. For more information visit: www.oewd.org/covid19.

Lisa Fernandez is a reporter for KTVU. Email Lisa at [email protected] or call her at 510-874-0139. Or follow her on Twitter @ljfernandez

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