Application period opens for interest-free loans for Palm Desert small businesses

Small businesses in Palm Desert impacted by the current COVID-19 shutdown may begin to apply for $5,000 interest-free loans from the city’s emergency relief fund starting Thursday. 

“This help is not solely for closed businesses, but for all businesses that have been impacted by the state orders,” Mayor Kathleen Kelly said.

Up to 100 qualifying businesses will receive the loans, approved on a first-come, first-serve basis, with applications processed as they are received to be able to get the money out as quickly as possible, Economic Development Director Martin Alvarez said.

“It is a very simple program,” Alvarez said. “The requirements to qualify would be that you comply, and that you continue to comply, with the current stay-at-home orders” put in place by the state on Dec. 6 to help slow the spread of COVID-19.

Among the businesses that could qualify are hair and nail salons, barbershops and other personal care businesses that have been temporarily closed, plus gyms and restaurants, which can currently offer only take-out and delivery services.

Applications are available on the city’s website, cityofpalmdesert.org, and must be submitted by Jan. 11 at noon.

Loans come from Unite Palm Desert fund

The City Council unanimously approved “repurposing” $500,000 that had been earmarked for a hospitality incentive program under “Unite Palm Desert” on Tuesday, during a special meeting.

The money is part of $2.5 million from the economic development reserve fund the council appropriated earlier this year for the creation of “Unite Palm Desert.” The multi-tiered program was set up to help businesses and residents through interest-free loans and rent and mortgage assistance during the pandemic.

Loans will not have to be paid back, unless the recipient violates the loan agreement, which will include a promissory note that compliance with state and county regulations continues after receiving the funds.

Through the program, a total $989,850 in interest-free loans of $1,500 to $25,000 have so far been awarded to 156 businesses in Palm Desert, officials said.

It's not enough, council says

In approving the loan program on Tuesday, council members said $5,000 is not enough and asked about making additional funds available.

For many of the businesses, it is the second or third time since March the state has ordered that they shut down all together or offer limited services.

“The restaurant owners I’ve talked to, they say in order to just to break even … they need a couple-thousand dollars a day,” Councilmember Gina Nestande said. “While five-thousand (dollars) is better than nothing … is there any other pot of money that we could consider from our emergency funds or reach out to the state” for money?

Responding to the council's concerns about getting funds to businesses as quickly as possible, Finance Director Janet Moore said, “this was the quickest way to get that moving.”

Staff is looking for other ways to help businesses financially, Moore said, and will bring some options to the council when it meets again in January.

There is money in the economic development reserve fund, she said. Money could also come from pending sales of property owned by the city's former redevelopment agency, half of which would be allocated to the economic development fund, Moore said.

“This was just an immediate response, but we can keep looking; we can keep researching,” Moore said.

Councilmember Sabby Jonathan said about one-third of the new $900 billion federal stimulus package approved by Congress this week, but not yet signed by President Donald Trump, is designed to help small businesses as well.

Palm Desert Area Chamber of Commerce CEO Pam Scannell applauded the city for pulling together the latest round of loans.  

“Keeping the availability of funding for businesses that are closed, due to the state mandates, helps support them while they comply with the closures,” Scannell said.

The application period opens Dec. 30 for the California Small Business Relief Grant program through the grant website, at careliefgrant.com 

The chamber’s small business development committee holds daily informational webinars as well, to keep business owners up on the latest information about the grants, though some details are still being worked out, Scannell said.

The webinars can be viewed through the chamber’s website, pdacc.org.

The Palm Desert chamber has also begun an eGift Card program. Gift cards, which can only be used at local participating merchants, can be purchased through the chamber’s website.

“The list of merchants is growing all the time,” Scannell said. “The card is sent to your recipient’s phone, nothing to get lost in the mail.”

For more information about the city’s Unite Palm Desert emergency business relief loan program, and other assistance for Palm Desert businesses, (760) 776-6362 or email bizsupport@cityofpalmdesert.org.

City Hall will be closed from Dec. 24 until Jan. 4, however, loan applications will be accepted via the email address, and will be time stamped in order of receipt, officials said.

Desert Sun reporter Sherry Barkas covers the cities of La Quinta, Indian Wells, Rancho Mirage and Palm Desert. She can be reached at sherry.barkas@thedesertsun.com. Follow her on Twitter @TDSsherryBarkas.