Press Releases
City of Gonzales Provides Small Business Relief Funds Through Covid-19 Bridge Loans
$200,000 of Local City Funds Were Dispersed to Small Businesses in Gonzales
Gonzales, CA – Following the shelter-in-place order the City of Gonzales mobilized its own financial resources to establish the COVID – 19 small business bridge loan program. The goal of the bridge loan is to assist small business owners while they wait to receive funds from state and/or federal small business assistance programs.
"Many small businesses are in need of funds to help them during this time of unprecedented challenges due to the coronavirus pandemic and the process to receive funds through other programs is moving very slowly. We needed to take quick and assertive action to support the small business community in our City," said Matthew Sundt Community Development Director/Building Official.
The bridge loans provide up to $10,000 with a 1 percent interest rate. Under the City's program, loan payments are deferred until January 1, 2021, or deferred indefinitely if the business, (1) retains employees, (2) rehires laid off employees, or (3) if the owner is the only person working in the business, it allows the owner to retain the business.
If one of the above three criteria are met and the business owner agrees to work with the city's economic development consultant to complete all loan requirements and develop a basic business planby January 1, 2022, then the loan will be deferred indefinitely.
By May 1 the City of Gonzales was able to provide twenty bridge loans and has dispersed $200,000 of city funds to support local small businesses. The funds for the loan program came from existing Community Development Block Grant funds and Business Loan program income and the City applied the same rules that were already in place for these programs to the bridge loan program.
In addition to the bridge loans the City provided small business owners information about the Small Business Administration Loan Program, the Paycheck Protection Program, and the various State of California initiated small business assistance programs available. The City's economic development consultant was also available to them to answer any questions about the City's bridge loan, the variety of state and federal small business financial assistance programs and to assist them through the application process.
About City of Gonzales
The city of Gonzales, California is located in Monterey County. The quaint and culturally diverse community of approximately 9,000 people is in the heart of the Salinas Valley’s agricultural and wine region. Gonzales is an established regional leader in agricultural-technology and innovation, environmental awareness and sustainable practices. Gonzales is home to companies such as HealthySoil, which manufactures products to improve agricultural crop production; Converted Organics, a natural fertilizer company; Taylor Farms, a fresh vegetable production facility, Mann Packing/Del Monte Fresh, a leading supplier of fresh cut vegetables; Ramsay Highlander, an innovator, designer and manufacturer of technologically-advanced harvesting equipment; Papé Equipment Handling, Braga Fresh, Green Valley Farm Supply, Tessemae’s, American Bioscience, Caraccioli Cellars, and Constellation Brands, an international producer and marketer of beer, wine and spirits.