The town will forgive about $557,267 in loans awarded to native small companies deemed “non-essential” by the state and/or Los Angeles County Division of Public Well being throughout the COVID-19 state of emergency.
The Metropolis Council enacted the Stand Robust Enterprise Restoration Mortgage program, in March 2020, instantly following the “safer at house” orders issued by the state and LA County Division of Public Well being.
The loans offered wherever from $5,000 to $20,000 at curiosity equal to Lancaster’s Common Portfolio Yield for as much as 5 years, with curiosity waived if the loans have been repaid in full inside one 12 months from the date of receipt, in line with a employees report.
“So we have been capable of fund 37 companies whole valued at a complete of $700,000,” Chenin Dow, senior supervisor for Actual Property & Financial Improvement stated throughout a presentation at Tuesday’s Metropolis Council assembly.
Thirty-one of the 37 companies have been deemed “non-essential,” together with eating places, salons, health facilities and leisure venues that confronted months and months of closures, Dow stated. She added the companies have been compelled to put folks off or cut back their hours.
“They actually struggled to remain afloat,” Dow stated.
The cash initially got here from town’s Basic Fund. Nonetheless, the federal American Rescue Plan Act will reimburse town for these bills, Dow stated. She added the six important companies that obtained loans have already began repaying them and indicated they don’t want the extra help.
Mayor R. Rex Parris praised Dow’s efforts via the pandemic to help native companies.
“The sum of money you have been capable of finding, beg, borrow and steal and put again into this financial system was really magnificent,” Parris stated.
Elise Cabey, co-owner of Pilmera VR, thanked the Metropolis Council for contemplating the proposed advice to forgive the loans.
“Clearly the monetary influence was completely devastating however this mortgage forgiveness program will really make a distinction in blunting a number of the worst ache of the shutdown,” Cabey stated.
The Metropolis Council authorized the mortgage forgiveness at Tuesday night time’s assembly on a 4-0 vote, with Councilman Ken Mann absent.