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Joint Communication to Carlsbad Businesses Regarding COVID-19 #7
The City of Carlsbad, Carlsbad Chamber of Commerce and the Carlsbad Village Association are committed to providing the most up-to-date information and resources during this emergency. We will continue to provide joint communications and have added regular webinars to our ongoing connection with the business community.
Our next webinar will be held on May 12 at 2:00pm. We will discuss economic recovery and revitalization efforts in Carlsbad, provide answers to questions from businesses, and develop ideas to help support our local economy. You can register to participate here.
Each of our organizations maintain regularly updated business resources pages on our respective websites. We encourage you to visit.
If you have a question for the City or would like to suggest a topic for an upcoming joint communication or webinar please email business@carlsbadca.gov. Here is the latest.
City Approves $5 Million Package for Economic Recovery and Revitalization
On May 5, 2020 the Carlsbad City Council approved a $5 million economic revitalization package to help businesses affected by COVID-19. The majority of the funding, $4.4 million, is for microloans and small business recovery loans directly to Carlsbad small businesses.
Microloans will be made available for businesses with gross revenue of $2 million or less and 15 employees or fewer with loan amounts ranging from $5,000 to $10,000. The first payment could be deferred up to 90 days and up to 180 days with a demonstrated need. Repayment rates are outlined below:
- 0% interest if paid back within 6 months
- 1% interest if paid back within 12 months
- 2% interest if paid back within 18 months
Small business recovery loans will be made available for businesses with gross revenue of $3 million or less and 50 or fewer employees with loan amounts ranging from $10,000 to $25,000. The first payment could be deferred for up to 90 days and up to 180 days with a demonstrated need. Repayment rates are outlined below:
- 2% interest if paid back within 12 months
- 3% interest if paid back within 30 months
The city is currently working to secure a lending partner to administer the program. The city will hold an informational webinar on the program the week of May 18 and plans to open applications the week of May 25. Please stay tuned for information on an upcoming webinar we will be hosting on how to apply for the program.
Other programs approved include:
- Mediation and negotiation services for commercial landlords and tenants
- A joint marketing strategy in partnership with the Carlsbad Chamber of Commerce, Carlsbad Village Association and Visit Carlsbad to promote Carlsbad tourism and businesses
- Rent relief for businesses who lease city-owned property
State and County Announcements about Incremental Re-opening of Businesses
Governor Newsom has announced progress into the next stage on the Resilience Roadmap that guides the re-opening of businesses and other activities.
There is a clear list of sectors, businesses, establishments, or activities that are not permitted to operate at this time in the State of California. This includes:
- Personal services such as nail salons, tattoo parlors, gyms and fitness studios
- Hospitality services, such as bars, wineries, tasting rooms and lounges
- Entertainment venues with limited capacities, such as movie theaters, gaming facilities, and pro sports (without live audiences)
- Indoor museums, kids museums and gallery spaces, zoos (without events or shows), and libraries
- Community centers, including public pools (but excluding water parks), playgrounds, and picnic areas
- Limited-capacity religious services and cultural ceremonies
- Nightclubs
- Concert venues
- Live audience sports
- Festivals
- Theme parks
- Hotels/lodging for leisure and tourism
The state has provided guidance regarding Stage 2 sectors, businesses, establishments or activities that qualify to reopen upon certification that a county meets California Department of Public Health criteria and ensure the relevant industry guidelines are implemented. These sectors include:
- Retail Sector
- Logistics Sector
- Manufacturing Sector
- Destination retail, including shopping malls and swap meets.
- Personal services, limited to: car washes, pet grooming, tanning facilities, and landscape gardening.
- Office-based businesses (telework remains strongly encouraged)
- Dine-in restaurants (other amenities, like bars or gaming areas, are not permitted)
- Outdoor museums and open gallery spaces
Businesses in these sectors should review the industry guidelines and be prepared to implement them as state and county orders allow those sectors to re-open or re-open with modified operations.
Before reopening, all facilities should:
- Perform a detailed risk assessment and implement a site-specific protection plan
- Train employees on how to limit the spread of COVID-19, including how to screen themselves for symptoms and stay home if they have them
- Implement individual control measures and screenings
- Implement disinfecting protocols
- Implement physical distancing guidance
For cities in San Diego County, including Carlsbad, the county has provided additional guidance on the safe opening of businesses. According to the county, the Resilience Roadmap released by the state allows for certain businesses to reopen, with restrictions, starting May 8. It restricts operations at retail establishments to curbside and delivery only, including:
- Bookstores
- Jewelry stores
- Toy stores
- Clothing stores
- Shoe stores
- Home and furnishing stores
- Sporting goods stores
- Antique stores
- Music stores
- Florists
Businesses in the supply chain that support these businesses, in manufacturing and logistical sectors, can also operate consistent with relevant industry guidance and checklists issued by the state.
Businesses that are allowed to re-open consistent with state and county actions need to complete the county’s Safe Reopening Plan, print and post it at their entrance.
You can find more information from the county here. Businesses with questions can also email covid19businessquestions@sandiegocounty.ca.gov
The updated county public health order with additional information can be found here.
The state has also set up a way to gather input to inform future industry guidance using the California Recovery Roadmap survey.
Great Plates Delivered Program
On April 24, 2020, Governor Gavin Newsom announced the launch of the “Great Plates Delivered” program, a meal delivery service for California’s older adults. The program is designed to support adults 65 and older and adults 60-64 who are at high-risk from COVID19, in staying home and staying healthy by delivering three nutritious meals a day, and also provide essential economic stimulus to local businesses and workers struggling to stay afloat during the COVID crisis
If you’re a food service provider and interested in participating, please submit an interest form. Currently, the state is collecting the restaurant and food provider information and passing details to the local administrator which in our case would be the County. We are working with the County to ensure that Carlsbad businesses interested in this program are able to participate.
PPP Loan Funds Still Available
Funding is still available for the federal Paycheck Protection Program (PPP). Eligible businesses can apply for funding to cover payroll, mortgage interest, rent and utilities for up to eight weeks. The loan can be forgiven based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Under this program:
- Eligible recipients may qualify for a loan up to $10 million determined by eight weeks of prior average payroll plus an additional 25% of that amount.
- Loan payments will be deferred for six months.
For many of our businesses, this program is the best option to help with near-term operational costs and the effects of the COVID-19 crisis.
While Economic Injury Disaster Loan (EIDL) funding is still available, we have been informed that most of the awardees are businesses that are agriculture-related.
Again, we continue to be inspired by our business community’s resilience during this time. We’re eager for our businesses to be able to safely and responsibly reopen. Our continued communications will strive to make sure you have the most complete and up to date information during this ever-changing time. Thank you.
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