San Diego County supervisors will vote Tuesday on whether or not to determine a $5 million restoration mortgage program, partnering with the San Diego Basis, for small companies working in unincorporated areas.
County Supervisors Dianne Jacob and Jim Desmond, the authors of the proposal, stated the funds would assist companies get the assets they want through the public well being disaster.
The county would direct The San Diego Basis to make use of the cash to fund loans as much as $50,000 for companies with 50 or fewer workers, with an rate of interest to not exceed 2% and a max two-year mortgage time period.
The county’s fund will come from the Common Fund stability. Functions that present job retention and creation may have the next likelihood of receiving funds, in response to the proposal.
The county’s mortgage program proposal comes after comparable applications have been carried out within the cities of San Diego, San Marcos, Poway and Coronado.
The $5 million fund, if handed, would even be the primary contribution to a lately introduced San Diego County COVID-19 Small Enterprise and Nonprofit mortgage Program (SBNLP), a public-private partnership fashioned by County Supervisor Nathan Fletcher and The San Diego Basis.
This system will present no-to-low curiosity loans for companies financially impacted by the pandemic. This system can entry obtainable catastrophe restoration loans with accepted 95% ensures on the principal, Fletcher introduced.
It’s anticipated a wide range of native governments, philanthropists and different entities will contribute to this fund, Fletcher stated.
For loans over $50,000, SBNLP collaborators plan to make use of philanthropic and subordinate funds to leverage extra, low-cost funding obtainable from group growth monetary establishments (CDFI) and different native banking establishments.
“We designed this program to permit private and non-private entities to donate cash that our strategic companions can leverage utilizing their technical experience, workers capability, stability sheets and assets to quickly inject liquidity into the native San Diego County small enterprise sector,” Fletcher stated.
The mortgage servicing will probably be managed by means of CDFI establishments Accion San Diego and LISC San Diego, The San Diego Basis, and Mission Pushed Finance.
Different finance companions embrace the California Southern Small Enterprise Improvement Company, and San Diego & Imperial Small Enterprise Improvement Middle (SBDC).
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