Manhattan Beach Launches Small Business Loan Program
Jan 26, 2021 12:11PM ● By Mb News Staff
Photo via city of Manhattan Beach
The city of
Manhattan Beach has created a $250,000 fund that will offer loans up to $10,000 to the city's small businesses. The loan program will begin
to accept applications on Wednesday, January 27, on a first-come,
first-served basis until all funds are exhausted.
The Manhattan Beach City Council created the loan program in response to businesses facing decreased revenues and
possible closures following coronavirus restrictions.
While numerous federal and county financial assistance programs have
been created to assist businesses, few cities have set aside funding to provide loans to local businesses. However, the loans are likely to be particularly welcome in Manhattan Beach, where many
of the town's businesses have been deemed ineligible for other loan programs due to
socioeconomic factors.
Manhattan Beach's loan program aims to promote
the economic viability of local businesses financially impacted by the
COVID-19 pandemic, reduce the risk that local jobs will be lost due to
the COVID-19 pandemic, and reduce the risk that the city’s sales tax
and other revenues will be further diminished due to the COVID-19, according to the city.
The amount of assistance will range from $2,500 to $10,000 with an interest rate predicated upon the Local Agency Investment Fund (LAIF) rate at the time that the City issues an affirmative declaration that the local emergency is no longer in effect, plus 0.5%.
To be eligible for the loan, the business must:
- Be considered a “Local Small Business” as a “business” (defined in Section 6.01.010 of the Municipal Code);
- Hold a current City business license,
- Have a yearly gross revenue of $3.0 million or less; and
- Maintain a “brick and mortar” location physically located within the city of Manhattan Beach. Businesses that are considered “home occupations” are not eligible for this loan.
To assist interested businesses, the city has developed a webpage at www.citymb.info/covidloans. The webpage features a link to the application, frequently asked questions, and additional documents that may be helpful in processing the application.
For additional information or questions regarding the loan program, interested businesses may reach out by email at [email protected].
