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Posted on: May 18, 2020

Tracking coronavirus: Anaheim offers loans for struggling small businesses

Small Business Microloan PR

ANAHEIM, Calif. (May 18, 2020) — Anaheim small businesses struggling with the economic impacts of the coronavirus crisis can apply for a loan of up to $10,000 from the city of Anaheim to help retain employees, create jobs or meet day-to-day operating expenses.

The Small-Business Microloan program is open to Anaheim small businesses with five or fewer employees. About 100 small businesses are expected to benefit from the $1 million program.

“Anaheim’s small businesses are the backbone of our city, yet they are among the most vulnerable in this crisis,” Anaheim Mayor Harry Sidhu said. “As the owner of my own family business, I’ve seen firsthand the challenges our small businesses are facing. We know help cannot come soon enough, and the need out there is great. But we hope that this program will be a lifeline for some.”

Small businesses can apply on Thursday and Friday to be part of a lottery from which eligible awardees will be randomly selected.

To further aid small businesses, loan payments can be deferred without penalty and loans can be forgiven if a business retains, rehires or creates a job in our city.

Program details

  • Loans up to $10,000
  • Loans awarded through a random drawing of all eligible applicants, conducted after the application period
  • Open to small, for-profit business in Anaheim with up to five full-time employees, including full-time equivalents
  • Funds can be used to retain employees, create jobs or for day-to-day operating expenses, including rent and utility payments

 Loan terms

  • Two-year term
  • No penalty for early repayment
  • Annual 2 percent simple interest rate
  • Payments can be deferred for up to 12 months without penalty
  • Loans are forgivable as grants if a full-time equivalent employee is retained, rehired or if a full-time position is created in Anaheim for six months or longer during the first 12 months of the loan

Applications, webinars

  • Applications will open on Thursday, May 21, at 9 a.m. and are due on Friday, May 22, by 5 p.m.
  • Interested businesses should email economicdevelopment@anaheim.net with their business name, address and contact information
  • Businesses will be added to an interest list and receive a webinar registration link and application instructions
  • Paper applications can be picked up at City Hall and returned to a locked drop box on Thursday, May 21, and Friday, May 22 with details available by emailing economicdevelopment@anaheim.net
  • Program webinars will be held on Wednesday, May 20, in English, Spanish, Arabic and Vietnamese

The Small-Business Microloan program is through Anaheim Community and Economic Development with assistance from the Orange County/Inland Empire Small Business Development Center, a nonprofit assisting small businesses and funded by the Small Business Administration and the state of California.

The Small Business Development Center will review loan applications for eligibility, gather supporting documentation, provide multilingual counselors, help Anaheim with the random drawing and provide ongoing support services to awardees.

Funding is from federal Community Development Block grant money made available to Anaheim as part of the Coronavirus Aid, Relief, and Economic Security Act.

You can find out more about the Small-Business Microloan program here.

For regular updates on coronavirus, including links to business information, please see Anaheim.net/coronavirus.