City Of Manhattan Beach Unveils Loan Program For Businesses

Liz Spear
·2 min read

MANHATTAN BEACH, CA — The City of Manhattan Beach has created a $250,000 fund to assist local small businesses by offering loans up to $10,000, according to a city notification. The loan program will begin to accept applications on Wednesday, Jan. 27, on a first-come, first-served basis until all funds are exhausted. The business loan fund was created in response to businesses facing decreased revenues and possible closures following coronavirus restrictions.

“Manhattan Beach small businesses are part of the fabric of our community," said Manhattan Beach Mayor Suzanne Hadley. "Our city is taking a leadership role in providing much-needed financial assistance to help our businesses sustain their operations.”

At its Dec. 15, 2020 City Council meeting, council opted to establish a $250,000 fund for a COVID-19 business loan program to assist local small businesses that operate in the City of Manhattan Beach. "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Investment Fund (LAIF) rate at the time that the City issues an affirmative declaration that the local emergency is no longer in effect plus 0.5%," according to the city.

The city is attempting to help businesses that have been deemed ineligible due to socio-economic factors when it comes to other available loan and grant programs. And while numerous federal and county financial assistance programs have been created to assist businesses, few cities have set aside funding to financially provide loans to local businesses.

In establishing the loan program, the city believes it "promotes the economic viability of local businesses financially impacted by the COVID-19 pandemic, reduces the risk that local jobs will be lost due to the COVID-19 pandemic, and reduces the risk that the City’s sales tax and other revenues will be further diminished due to the COVID-19."

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,

  • Has 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 that can be visited 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 City’s loan program, interested businesses may reach out by email at covidloans@citymb.info.

This article originally appeared on the Manhattan Beach Patch