The city of Burbank is offering $400,000 in loans to small businesses impacted by the COVID-19 pandemic.
The loans, which range from $5,000 to $10,000, are technically forgivable grants and are being distributed through the Burbank Coronavirus Small Business Assistance Program with funding from the U.S. Department of Housing and Urban Development. The California Community Economic Development Association is administering the program for the city.
Burbank businesses with two to 25 employees, as well as independent contractors and gig workers who were operating on Jan. 2, 2020, are eligible.
“There is no expectation of repayment as long as they continue to be in business in Burbank one year after receiving the loan,” CCEDA Executive Director Roberto Barragan said. “More than 20 loans totaling $110,000 have already been processed.”
Those loan recipients cover a broad swath of industries, ranging from designers and professionals in the entertainment industry to Uber and Lyft drivers whose livelihoods have been upended by COVID-19.
‘Closed for good’
Many small business and entrepreneurs have exhausted their savings, made all the cost cuts they can and have burned through the money they received through federal stimulus programs, Barragan said.
“This has had a severe effect on Burbank’s business community,” he said. “We’re probably going to see as much as 25% of the city’s small businesses closed for good. It’s been an incredible hardship among entrepreneurs and gig workers.”
Loan recipients will receive additional economic recovery options through CCEDA, including access to economic injury disaster loans from the U.S. Small Business Administration.
‘It saved me’
Burbank Realtor Kevin Gerdes, who received a loan from the city in September, said it made all the difference.
“It saved me,” he said. “It’s really huge.”
Gerdes used his money to help pay for living expenses, regulatory dues, monthly fees for marketing and his lock-box subscription.
“The biggest impact of COVID-19 is what’s it’s done to the real estate industry as a whole,” he said.
Open houses can still be held, Gerdes said, but only under stringent safety guidelines.
“It’s an extreme process,” he said. “We have to disinfect the home before and after someone comes in, and we’re not allowed to double book an open house. Kids are not allowed, and the homeowner can’t be there during the showing. Clients must also sign a document that says they understand the risk.”
CCEDA partnered with Burbank after launching a similar partnership with the city of Carson.
“We have already lost tens of thousands of small businesses to forced closures,” Barragan said. “Cities like Burbank are stepping up and providing direct aid and assistance to save their respective business communities.”
Source: https://www.presstelegram.com/2020/11/05/burbank-offering-400000-in-loans-to-small-businesses-hit-by-covid-19/