Huffman: Local COVID-19 relief is available for small businesses
The COVID-19 pandemic has led to millions in lost revenue for local businesses and led to the permanent closure of 11 businesses so far in Humboldt County.
But assistance is available.
The recently passed Coronavirus Aid, Relief and Economic Security Act allocated $349 billion to Small Business Administration loans, but at a virtual town hall conducted by North Coast Congressman Jared Huffman on Monday night, he and local business leaders acknowledged that accessing those loans has been a challenge.
“We know there are problems with the rollout of these SBA programs,” Huffman said, “and in the North Coast you have a lifeline, some of you at least. We want to make sure you know how to get it.”
Local lenders are stepping up to fill in the gap for small businesses while they wait to receive assistance from the federal government, said North Coast Small Business Development Director Leila Roberts. Local banks and credit unions, as well as the city of Arcata, have made emergency bridge loans available, which help businesses make ends meet between a catastrophe and the receipt of longer-term assistance.
“Some of these businesses are going to need capital right away because they just shut down,” said Redwood Region Economic Development Commission Executive Director Gregg Foster.
The commission is primarily a lender, so it put a business loan program in place for its existing customers and has lent $300,000 so far, Foster said. The commission was able to secure funds to open up loans to non-existing customers, too.
That loan program offers a maximum of $25,000 with a six-month deferral and 2.5% interest, he said.
“So they’re pretty low interest and the goal of that is to provide some operating capital” while businesses wait for their SBA loans, he said.
The Small Business Development Center is helping business owners navigate through the federal assistance process through video conferencing app Zoom, Roberts said, and is “staffing up” to handle the increased volume.
“We are responsible for keeping folks informed as well as coached and supported,” Roberts said. “So please reach out to us because that’s exactly what we’re here for and if you’re applying for many of the local emergency bridge loans, they’re going to expect you to have been working with an SBDC adviser to make sure that you are navigating this with the best help possible.”
Even though the rollout of the loans has been cumbersome for many small businesses, Huffman said there is some good news.
“There are several Humboldt County businesses that have actually gotten their money,” Huffman said. “The North Coast Journal is a good example of that. … Some of this money is finally starting to flow.”
It’s still unclear when the economy will be able to reopen, but “we are not where we need to be yet in terms of maintaining a zero-spread profile,” Huffman said.
The past few days have been looking “very good” in Humboldt County with no new cases for almost a week straight, Huffman said, but when you open things up, people start moving around again and increase the risk of spreading the novel coronavirus, which causes the COVID-19 infectious disease.
For more information on COVID-19 help available to local small businesses, call the Humboldt County Sheriff’s Office of Emergency Services’ business line at 707-268-2527 or visit northcoastsbdc.org.
By: Sonia Waraich
Source: Eureka Times-Standard
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