Pamela Cruz. Peninsula 360 Press [P360P].
The California government announced the opening of a new fund aimed at helping small businesses affected by the COVID-19 pandemic to recover from the economic crisis and help keep local economies strong.
State Governor Gavin Newsom said in a statement that the program is designed to be a resource in the marketplace over the next year that small and medium-sized businesses can access as they recover.
"Ensuring that small businesses have access to capital will help spur economic growth across the state and support entrepreneurs who are working harder than ever to keep their doors open," he said.
The fund is a public-private partnership with private sector, philanthropic and public sector capital, including a $25 million anchor commitment and a $50 million guarantee allocation from the California Infrastructure and Economic Development Bank (IBank) to community development financial institutions (CDFI).
As such, California CDFIs will be in a better position to help small businesses with little or no access to banking recover and reposition themselves to survive the realities of the marketplace in the face of the COVID-19 pandemic.
For Ibank CEO Scott Wu, "as we work to recover from this recession, one of the most pressing issues we must address is the state of our small businesses," so this collaboration will provide affordable capital to small businesses.
The loans, which can be up to $100,000, are designed to support businesses that are adapting their business and face start-up or ongoing expenses to operate safely in a post-COVID-19 economy, which will seek to distribute the funds equitably across the state.
Small business owners interested in accessing credit can log on to www.caloanfund.org, where standard business information will be collected and then channeled to them with a CFDI.
If the application is approved, business owners will be assisted with the application, free counseling and access to a network of business support organizations organized by the California Association of Microenterprise Opportunities (CAMEO), among others.
It is worth noting that the California Rebuilding Fund is just one of the tools available to support small businesses as they work to safely reopen and recover from this public health crisis.
