Carlsbad City Council members approved on Tuesday a $5 million economic revitalization package that will help businesses in the city that were affected by the coronavirus pandemic, with most of those funds going toward small businesses.
The city said $4.4 million of the funding will go toward microloans and small business recovery loans to help independent businesses in Carlsbad. It said applicants who applied for federal assistance will not be able to use city funds for costs covered by that federal help.
A valid business license from the City of Carlsbad as of March 1 is required to qualify for the loan, which can be used for payroll, rent, utilities, mortgage interest and other operational expenses. Applications will be available no later than May 25, the city said.
To qualify for the small business recovery loan, applicants must have a gross revenue of $3 million or less and no more than 50 employees.
The loan will amount from $10,000 to $25,000 and the first payment can be deferred for up to 180 days. If paid back within the first year, the loan will have an interest of 2% and if paid back within 30 months, the interest will be 3%.
For microloans, qualifying businesses must have a gross revenue of $2 million or less and no more than 15 employees.
These loans will range from $5,000 to $10,000 and the first payment can be deferred for up to 180 days. If paid back within 6 months, the loan will have 0% interest, will have 1% interest if paid back within 12 months and have 2% interest if paid back within 18 months.
