Palm Desert adds $1M to COVID19-shutdown business assistance program

Sherry Barkas
Palm Springs Desert Sun

Another $1 million in Palm Desert’s reserve funds will be used to help restaurants impacted by the current COVID-19 shutdown with interest-free loans that can be forgiven if certain criteria are met.

Of the funds, $200,000 will be used to reimburse restaurants providing free healthy meals for seniors and residents of the city’s affordable housing units, with the potential of serving 7,400 meals.

The funds were unanimously approved Thursday for the city’s ongoing “Unite Palm Desert” program which so far has provided more than $2 million in assistance to businesses and residents that have been financially impacted by the pandemic through various shutdowns since March.

The money is coming from the city’s Economic Development reserve fund.

II Corso server Miguel Ruan delivers drinks to customers seated on the outdoor patio along El Paseo in Palm Desert, Calif., on, October 16, 2020. Palm Desert is offering financial assistance to restaurants impacted by the latest stay-at-home order, as approved on Thursday, Jan. 14, 2021, by the City Council.

Palm Desert restaurants affected by the Dec. 7 stay-at-home order still in place are eligible. Applications will be available on the city’s website, www.cityofpalmdesert.org, starting Jan. 20.

How the funds will be dispersed:

  • $800,000 is being allocated for forgivable interest-free loans of $5,000 to $10,000.
  • $200,000 is being allocated to reimburse restaurants for meals made and delivered to qualifying residents such as seniors and those living in city affordable housing units; up to $27 per meal, including a $5 delivery fee. The potential is for 7,400 meals to be served.

To be eligible, restaurants:

  • Must comply with the state regional stay at home order issued Dec. 7 and as may be amended or extended.
  • Must stay open for takeout service – or operate as allowed by current/future COVID-19 regional health orders.
  • Must remain in operation through May 31, 2021, to receive loan forgiveness.
  • Must comply with all state, county and city laws and ordinances.

“There is also an opportunity here for us to work with our restaurants to provide scheduled COVID-safe meals to our police and fire personnel,” Economic Development Director Martin Alvarez said, to say thank you.

Councilmember Karina Quintanilla suggested also looking at a way to provide meals to college students, perhaps in a drive-thru setting.

“We know that a lot of students who are supplementing their academic endeavors with sometimes part-time jobs, have been very hard hit during the pandemic and I think that … we could definitely be able to serve our students,” Quintanilla said.

The “restaurant recovery program” approved Thursday is expected to assist approximately 80 businesses, Alvarez said.

The additional funds for Unite Palm Desert came at the council’s request, saying in December they wanted to be able to do more for the small businesses, especially restaurants, impacted by the current stay-at-home order.

The  order reduced restaurants to takeout and delivery service only and closed service-related businesses such as hair and nail salons, barbershops, gyms except for outdoor programs and others.

At a special meeting on Dec. 22, the council approved reallocating $500,000 in the Unite Palm Desert program that had been earmarked for a hospitality incentive program, to be used for interest-free $5,000 loans for up to 100 qualifying businesses.

With that approval, the council asked staff to come back with a plan that puts more money into the program to assist businesses, restaurants especially.

Staff worked with the City Council Economic Development Subcommittee (EDC) to formulate and review the Economic Restaurant Relief Program guidelines, focused on helping restaurants which, Alvarez said have been hit especially hard.

The city received 139 applications – 82 service-related businesses such as salons and 57 restaurants – for the $500,000 council approved last month, Alvarez said.

Applications from the 57 restaurants can be moved into the program approved Thursday, Alvarez said.

“Doing that will possibly open up additional loans … for service-related businesses,” he said.

The city created Unite Palm Desert in May, setting up a multi-tiered program to help businesses and residents through interest-free loans and rent and mortgage assistance during the pandemic.

The program has to date provided more than $1 million in interest-free loans of $1,500 to $25,000 to 156 businesses in Palm Desert.

Additionally, about $61,000 have been awarded to residents in need of rent or mortgage assistance with an additional $198,000 worth of applications currently under review, city spokesman David Hermann 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