The city of Burbank is offering $ 400,000 in loans to small businesses affected by the COVID-19 pandemic.
The loans, which range from $ 5,000 to $ 10,000, are technically repayable grants and are distributed through the Burbank Coronavirus Small Business Assistance Program with funding from the US Department of Housing and Urban Development. The California Community Economic Development Association administers the program for the city.
Burbank businesses with two to 25 employees, as well as independent contractors and gig workers that were operating on January 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,” said CCEDA executive director Roberto Barragan. “More than 20 loans totaling $ 110,000 have already been processed. “
These loan recipients cover a wide range of industries, from designers and professionals in the entertainment industry to Uber and Lyft drivers whose livelihoods have been disrupted by COVID-19.
“Closed for good”
Many small businesses and entrepreneurs have used up their savings, made every possible cost cut and have used up the money they received from federal stimulus programs, Barragan said.
“It has had a severe effect on the Burbank business community,” he said. “We’re probably going to see up to 25% of the city’s small businesses shut down for good. It has been an incredible ordeal for entrepreneurs and workers alike.
Loan recipients will benefit from additional economic recovery options through CCEDA, including access to economic disaster loans from the US 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 says. “It’s really huge.”
Gerdes used her money to help pay for living expenses, regulatory dues, monthly marketing fees, and her vault subscription.
“The biggest impact of COVID-19 is what it does to the real estate industry as a whole,” he said.
Open days can still be organized, Gerdes said, but only under strict safety guidelines.
“It’s an extreme process,” he said. “We have to sanitize the house before and after someone comes in, and we are not allowed to double book an open house. Children are not allowed and the owner cannot be present during the screening. Customers must also sign a document stating that 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 shutdowns,” Barragan said. “Cities like Burbank are stepping up their efforts and providing direct aid and assistance to save their respective business communities. “
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