The purpose of the CARES Act Revolving Loan Fund (CARES Act RLF) is to provide economic assistance to City of San Diego or City of Chula Vista businesses impacted by the COVID-19 pandemic. The loans are intended to help entrepreneurs adapt their business models to operating under pandemic restrictions, to promote economic resiliency, and to support the retention or creation of jobs. Financial assistance will be allocated to qualified small businesses based on the availability of funds, program guidelines and the submission of all required information and supporting documentation. The CARES Act RLF is being administered by the City of San Diego Economic Development Department.
Businesses operating in the City of San Diego’s or City of Chula Vista’s low- and moderate-income areas or businesses classified as part of the region’s base sector industries will receive priority and expedited service in the loan process. (Base-sector businesses are those that make, sell or offer products or services to customers primarily OUTSIDE the San Diego region.)
$1,620,000 from the CARES Act Revolving Loan Fund
Generally, $25,000 to $95,000 per qualifying business (Other amounts may be considered.)
To be eligible, a business must meet the following minimum requirements:
o Reside in California
o No bankruptcies in the past three (3) years
o No repossessions or foreclosures within past three (3) years
o No outstanding tax liens and judgments
o No unpaid child support
As part of the preliminary online application, the following documents must be submitted along with a credit check authorized for the business and each owner with at least a 20% stake:
If deemed eligible, each applicant will then be asked to provide the City of San Diego’s underwriting team with the following documents/information:
Loans generally may be used only for equipment and working capital required to adapt the business model to operating under pandemic restrictions. Refinancing of a portion of Payment Protection Program (PPP) loans may be considered when such refinancing will contribute to economic resiliency and job creation or retention.
Loan origination fee of $100 plus 1.0% per loan that may be included in the financed amount
No payments and no interest accrued for first six (6) months, with loan terms generally ranging from 54 to 78 months, depending on the uses of the loan.
The table below is provided for illustration only and does not guarantee a particular set of loan terms and payments amounts.
|Loan Conditions||Sample Business A||Sample Business B||Sample Business C||Sample Business D||Sample Business E|
|Loan Amount Disbursed||$25,000||$35,000||$50,000||$80,000||$95,000|
|Loan Origination Fee: $100 + 1%||$350||$450||$600||$900||$1,050|
|Total Financed Amount||$25,350||$35,450||$50,600||$80,900||$96,050|
|Loan Term (including period of no payments)||54 months||60 months||66 months||72 months||78 months|
|Number of Loan Payments||48||54||60||66||72|
|Estimated Monthly Payment Amount||$561.11||$702.61||$909.22||$1,331.19||$1,459.35|
If approved for a CARES Act RLF loan, the applicant will be required to complete, sign and submit the following loan documents, at a minimum:
These documents, as applicable to the business structure, will also be required:
After all completed loan documents are received and executed by the City of San Diego, the net loan proceeds will be disbursed electronically within 20 business days.
Funding for this program is provided through the U.S. Department of Commerce Economic Development Administration.