For City of Sacramento Businesses Impacted by COVID-19
March 21, 2020 12AM UPDATE
Due to the overwhelming response, the City of Sacramento is no longer accepting new applications for the City’s Small Business Economic Emergency Relief Loan Program. If additional funding become available, we will reopen the portal. Please sign-up to our email list for updates.
The City is reviewing applications received and will respond to applicants the week of March 30.
To mitigate the impact of COVID-19 on Sacramento businesses and their employees, the City of Sacramento (City) will commit up to $1 million in one-time funds to create a temporary Small Business Emergency Economic Relief Fund to assist in the retention of employees.
Please see the Files section below for additional information, including:
Frequently Asked Questions
List of Application Questions in English, Spanish, and Chinese (Traditional and Simplified)
We will continue to post additional information as it becomes available.
The City is offering up to $1 million in zero-interest, secured loans to businesses with up to 25 full-time equivalent employees for temporary economic relief to assist in the retention of employees. Loans up to $25,000 per business are available with loan payments beginning within 120 days after Sacramento’s emergency is lifted. Of the total amount, a minimum of $250,000 will be made available for micro businesses with 5 or fewer employees. Loan funds may be used to cover the day-to-day operating expenses of the business such as payroll. Loans will be awarded on a first-come, first-serve basis to qualified applicants upon submission of all required information and supporting documents.
Minimum eligibility to receive a zero-interest loan will be determined on the following basis. Eligible businesses must:
For-profit, independently owned local business with up to 25 FTE and non-profit organizations with 501(c)(3) status may apply
Have no more than 25 full-time equivalent employees
Be a restaurant, retail, service, or entertainment business with a storefront; or a day care establishment
Have a physical establishment within the city of Sacramento (no home-based businesses with the exception of child-care businesses)
Have a demonstrated hardship due to COVID-19, such as a loss in revenue
Have written sick leave policies to assist workers impacted by the COVID-19 pandemic
Not include a business owner that has previously applied for a zero-interest loan under this program
Be in good standing with the City of Sacramento (e.g., current on bills, no liens or judgments, etc.)
Have a current City of Sacramento Business Operations Tax Certificate (BOTC) and have been in operation as of March 13, 2020
Loan applications will be reviewed by a loan committee consisting of City staff and qualified external partners on an ongoing basis until all funds are disbursed. Funding decisions will be made within 30 days of receiving a complete application. If the City determines that additional information or supporting documents are needed to review an application, then the application is not considered complete. Funding may be released within two weeks of approval (pending approval of third-party fiscal intermediary).
Meaning of "Full-time Equivalent"
The abbreviation FTE is short for “full-time equivalent.” The City of Sacramento determines the total number of employees of a business on a FTE basis. A full-time employee is one who works 40 hours per week. For example, one employee who works 40 hours per week equals one FTE. To determine the FTE number for part-time employees, add the total number of hours worked in a week by all part-time employee, and then divide that number by 40. For example, if a business has four part-time employees who work a total of 40 hours per week, those employees equal one FTE.
Applications will be reviewed on a first come, first serve basis. Applications will be accepted on a rolling basis until all available funds have been awarded.