The City of Capitola has been awarded Cares Act funds to establish a small business assistance grant program to offset the negative impacts of the Coronavirus pandemic and to assist businesses in Capitola with financial recovery.
Funding will be available to small businesses with up to 25 employees to cover rent or mortgage payments.
The California Department of Housing and Community Development Department awarded the City of Capitola a Community Development Block Grant — Coronavirus Response Round 2 & 3 for $264,761.
The City will be offering grants for up to $7,500 per eligible business. City officials estimate 30 to 35 businesses will receive funds for rental or mortgage assistance. Part of the funding will be used for food assistance.
The City of Capitola is partnering with the Santa Cruz Small Business Development Center of Santa Cruz for business assistance grant program administration. SBDC will provide expertise in application review and offer technical assistance to those businesses that need one-on-one or group training. The goal of this assistance is to improve the likelihood of the business owners’ success in surviving and thriving post-COVID-19.
Mayor Yvette Brooks said,”I appreciate all the hard work and collaboration between SBDC, Capitola’s Economic Development Recovery Task Force, the CDBG ad-hoc committee, and City staff to get CARES Act funds out to our businesses.”
SBDC Director Brandon Napoli said, “I’m confident our expert team will be able to help Capitola’s businesses not only recover from the effects of this devastating health crisis but thrive in our post-pandemic economy.”
Grant applications opened Sept. 2 at www.cityofcapitola.org/covid19businessgrant. Completed applications must be submitted by close of business on Sept. 30.
Applicants must own a for-profit business with 25 or less employees, conduct business in a commercial or industrial brick and mortar space within Capitola city limits, and quality under block grant standards.
If the number of qualifying applications received exceeds the amount of funding available, the City will implement a lottery system for the eligible small businesses.