Burbank offering $400,000 in loans to small businesses hit by COVID-19 – Daily News

Town of Burbank is providing $400,000 in loans to small companies impacted by the COVID-19 pandemic.

The loans, which vary from $5,000 to $10,000, are technically forgivable grants and are being distributed by means of the Burbank Coronavirus Small Enterprise Help Program with funding from the U.S. Department of Housing and Urban Development. The California Community Economic Development Association is administering this system for the town.

Burbank companies with two to 25 workers, in addition to impartial contractors and gig staff who had been working on Jan. 2, 2020, are eligible.

“There isn’t a expectation of compensation so long as they proceed to be in enterprise in Burbank one yr after receiving the mortgage,” CCEDA Govt Director Roberto Barragan mentioned. “Greater than 20 loans totaling $110,000 have already been processed.”

These mortgage recipients cowl a broad swath of industries, starting from designers and professionals within the leisure business to Uber and Lyft drivers whose livelihoods have been upended by COVID-19.

‘Closed for good’

Burbank Realtor Kevin Gerdes acquired a mortgage from the town of Burbank in September. He used it to assist pay for dwelling bills, regulatory dues, month-to-month charges for advertising and his lock-box subscription. (Photograph courtesy of Kevin Gerdes)

Many small enterprise and entrepreneurs have exhausted their financial savings, made all the fee cuts they’ll and have burned by means of the cash they acquired by means of federal stimulus applications, Barragan mentioned.

“This has had a extreme impact on Burbank’s enterprise neighborhood,” he mentioned. “We’re in all probability going to see as a lot as 25% of the town’s small companies closed for good. It’s been an unbelievable hardship amongst entrepreneurs and gig staff.”

Mortgage recipients will obtain further financial restoration choices by means of CCEDA, together with entry to financial damage catastrophe loans from the U.S. Small Enterprise Administration.

‘It saved me’

Burbank Realtor Kevin Gerdes, who acquired a mortgage from the town in September, mentioned it made all of the distinction.

“It saved me,” he mentioned. “It’s actually large.”

Gerdes used his cash to assist pay for dwelling bills, regulatory dues, month-to-month charges for advertising and his lock-box subscription.

“The largest affect of COVID-19 is what’s it’s carried out to the actual property business as an entire,” he mentioned.

Open homes can nonetheless be held, Gerdes mentioned, however solely beneath stringent security tips.

“It’s an excessive course of,” he mentioned. “We now have to disinfect the house earlier than and after somebody is available in, and we’re not allowed to double e-book an open home. Children usually are not allowed, and the home-owner can’t be there in the course of the displaying. Purchasers should additionally signal a doc that claims they perceive the chance.”

CCEDA partnered with Burbank after launching an analogous partnership with the town of Carson.

“We now have already misplaced tens of hundreds of small companies to pressured closures,” Barragan mentioned. “Cities like Burbank are stepping up and offering direct assist and help to avoid wasting their respective enterprise communities.”

— to www.dailynews.com

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