In an effort to bridge financial gaps faced by small businesses, county leaders approved a $300,000 grant to the East County Economic Development Council to establish a revolving loan fund.
Read more What to know about Canada’s escalating trade war with the US as Carney retaliates with tariffs
The San Diego County Board of Supervisors unanimously authorized the expenditure — brought forward by Supervisors Joel Anderson and Monica Montgomery Steppe.
Grant funds will be combined with a $400,000 contribution drawn down from the U.S. Economic Development Administration to create the revolving loan fund, which officials say will help businesses who may not qualify for traditional financial assistance.
“Not only is this lifting the community with jobs and opportunity, it’s also creating a little bit of tax base in this money,” Anderson said. “As it’s paid back, it’s reloaned and continues to help more people build an economic future for their family.”
The fund will be available to small businesses — including start-ups, microbusinesses and minority-owned businesses — across East County, including El Cajon, La Mesa, Santee, Lemon Grove and unincorporated communities.
With many locally owned businesses facing significant challenges and struggling to stay afloat, Montgomery Steppe said smaller loans and flexible financing were clear solutions.
Barry Jantz sits as the chair of the East County Economic Development Council and sent a letter to county officials asking them to approve the funding.
What’s unique about the revolving loan fund is the local community will administer the funds, Jantz said, whereas many federal and state loans aren’t administered locally — and often come with strict requirements.
Read more After investigation of tennis club’s $50-a-month city lease, San Diego demands answers, and fixes
Loans will range from $1,000 to $50,000, according to a staff report, which can be used for a variety of operational needs, such as working capital, new equipment, modernizing the space, expansion and job creation.
Borrowers will also have access to the Small Business Development Center for advice on technical issues often faced by small businesses.
County funding will be pulled from unspent operational savings from the Office of Emergency Services.
“It’s keeping the opportunities in perpetuity, and that includes businesses that otherwise may have to shut down because they need a bridge,” Jantz said. “They may need something right now while there’s a cash flow issue or whatever it may be.”
Cities and municipalities across the East County region submitted letters in support of the revolving loan fund, with many noting they plan to support and promote the program.
“Over time, the fund will support multiple generations of local businesses, expand employment opportunities, strengthen commercial corridors, and contribute to a more resilient regional economy,” La Mesa City Manager Greg Humora said in a letter.
Read more Houthi strikes set fire to Saudi oil sites and wound 73, plus other key Mideast news
