The Coronado City Council approved the Lifeline Business Loan program at its Tuesday, April 21, meeting that will portion out $2 million in City funds in no-interest potentially forgivable loans of up to $15,000 each to eligible businesses.
Council members said they want the program implemented as soon as possible to help local businesses that have been forced to close or vastly reduce their operations due to the coronavirus pandemic.
The City will reserve $2 million in General Funds for the loans and enter into an agreement with CalPrivate Bank, with an office in Coronado, to assist with the loan administration and marketing. The bank is partnering with the City to facilitate a process by which loans can be made quickly to qualified businesses. Applications are available now at the Coronado Chamber of Commerce Office, 1125 Tenth St.
The loan terms for three tiers of Coronado businesses are $15,000 maximum for each business, defined as a discrete individual storefront; a maximum loan term of 5 years; zero percent interest with consideration of loan forgiveness depending upon circumstances; no loan to collateral percentage; evidence that a business has applied for federal or state COVID-19 related business assistance; and evidence of paid local sales tax.
“We should be able to set up the entire program within a few short weeks,” City Manager Blair King said. “Our goal is to qualify applicants and get the loans out. We want the process to be simple and efficient, so tax-paying businesses get the help they need as quickly as possible.”
The Council directed that Tier 2 businesses be allowed to apply 30 days after the Tier 1 businesses and reserved the right to suspend the Lifeline Loan Program if the $2 million is not totally subscribed within two months of initiation. The Council will review the program in 30 days.
Tier 1 businesses number 124 and include those considered to be small and locally owned that generate tax revenue for the City and are located anywhere in Coronado. Tier 2 businesses are those considered to be small, locally owned that generate sales tax revenue for the City, and are permitted on the second floor per the Orange Avenue Corridor Specific Plan.
The City has set up a Coronado Business Lifeline Loan program web page.