To Help Small Businesses, Santa Clara County Supervisors Offer $ 100 Million Loan Program | New
Since the shelter-in-place orders in March, small businesses have had to shut down completely or temporarily due to losses, layoffs and bankruptcies.
In fact, the county’s largest city, San José, ranks fifth in the country with the most small business closures. For 1,000 businesses, nine are closed permanently and 11 are temporarily closed, according to Yelp data.
California is also the state with the most number of business closings – about 19,000 have closed permanently and nearly 20,000 are temporarily closed, according to Yelp data.
“Throughout this health crisis, we have all made great sacrifices for the health and safety of our communities. Our local small businesses are no exception, ”said Ellenberg.
Supervisors noted that small business owners have exhausted their support options and that due to lack of state resources and the unlikely likelihood of federal help, the county should support “the lifeblood of county communities ”.
However, administering a loan program will not be an easy task for the county as it does not have spending capacity or significant experience / expertise in administering this type of program. Supervisors noted that working with like-minded community partners, such as credit unions, community banks, and nonprofits, would help fill their gaps.
Local financial institutions could shape and implement the loan program and county partners could also subsidize the loan program, supervisors said.