SANTA MONICA—Secretary of Commerce Wilbur Ross announced on Thursday, July 30 that Santa Monica, along with several other cities and counties in southern California, will be receiving federal funding through the CARES Act to administer loans for small businesses and entrepreneurs.
“These investments come at a crucial time to help Southern California’s and our nation’s economy come roaring back and provide hard-working Americans with new opportunities,” said Dana Gartzke, the Assistant Secretary of Commerce for Economic Development.
The loans will be revolving loan funds, which use interest and payments of the loan to re-invest into other small businesses or entrepreneurs. The Economic Development Administration, who issued a statement detailing the $38 million investment, said the loans are intended to provide critical funding to small businesses affected by COVID-19.
Four million dollars will be given to the Pacific Coast Regional Small Business Development Corporation to administer revolving loan funds in Santa Monica and nearly 40 other cities in Southern California.
Santa Monica was impacted by COVID-19, as a large portion of the city’s economic activity comes from tourists. In 2017, visitor spending in Santa Monica totaled $1.96 billion.
Los Angeles County will receive $11 million for a revolving loan fund, San Joaquin County will receive $5.4 million, Ventura County will receive $2.7 million, and Riverside County will receive $858,000.
“President Trump is working diligently every day to support our nation’s economy following the impacts of COVID-19 through the CARES Act,” said Secretary of Commerce Wilbur Ross. “These investments will provide small businesses across Southern California with the necessary capital to rebound from the coronavirus pandemic and, in turn, create a stronger and more resilient state economy for the future.”
Los Angeles will receive $2.6 million, San Diego will receive $1.8 million, and the remainder of the $38 million will be distributed to other cities and areas throughout Southern California.
“Small businesses in Riverside County are still suffering due to the COVID-19 pandemic… I am grateful that my district has been awarded $858,000 in Recovery Assistance Grants through the CARES Act to help keep our small businesses open and our workers employed. I voted in favor of the CARES Act because I knew that the American people and small businesses were in need of immediate relief, and they still need our support as we continue battling this crisis. It’s important for Congress to continue to provide additional support to those who are struggling. Doing so will save lives, provide financial relief to families, and keep us moving forward,” said Congressman Mark Takano about the loan his district received.