San Diego City Wire

The Economic Development Department (EDD) for the City of San Diego is offering low-interest loans of $25,000 to $95,000 to local businesses to help cover expenses ranging from equipment purchases to digital marketing.

The loans are being offered through the CARES Act Revolving Loan Fund. Loans have a fixed 3%-interest rate and can be made for a general term of 54 to 78 months based on the loan's size and purpose.

However, San Diego officials said in a release that loans made through the fund accrue no interest or payments for the first six months of the term.

"We hope many of the businesses that qualify will take advantage of this unique opportunity," Development Department Director Christina Bibler said in the release. "We recognize many businesses are struggling with payrolls, overhead and other expenses as they try to adapt to changes in this new environment. As a city, we want to stand by them to help them modify their businesses as they weather this economic storm in the hopes that brighter days are ahead."

Loans made through the program cannot be forgiven. The city is required to make loans it reasonably believes will be repaid, city officials said. Revolving loan funds take the money paid back from loans given and use those funds and interest to make new loans.

Loans will be prioritized to smaller businesses within underserved communities, and within the manufacturing, international trade and logistics, military and tourism sectors, the city said.

Additional information about eligibility requirements for the revolving loan fund can be found on the city's website.

"With the pandemic, it's our goal as a City to do everything we can to help small businesses survive," Mayor Todd Gloria said in the release. "We hope by lending financial assistance, we can help these businesses with a much-needed lifeline during this time of uncertainty."