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COVID-19 SMALL BUSINESS EMERGENCY ECONOMIC RELIEF PROGRAM

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ROUND II AWARD LIST 

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ROUND II (CLOSED)
COVID-19 SMALL BUSINESS
EMERGENCY ECONOMIC RELIEF FUND

 

The City of La Quinta would like to thank small businesses that submitted their application  for the COVID-19 Small Business Emergency Economic Relief Program. Our deadline for this program ended on May 15, 2020 at 5pm. We are currently reviewing all eligible applications received and appreciate your patience during this process. Should the City reopen this program for further funding opportunities and additional applications to be received, please review our eligibility requirements for this program and visit this page for any updates. Please see below for further information on the program.

*IMPORTANT*

Did you know the City of La Quinta has compiled a list of resources for small businesses, employers, and employees? This list includes other financing opportunities and important information for you to take advantage of from Third-Party, Local, County, State, and Federal providers. Please visit the following website for further information:

https://econdev.laquintaca.gov/incentives/economic-development-incentives

 Loan Terms

  1. Repayment Term: 0% interest for a term up to one year. Initial loan payment will begin after April 1, 2021 and be equally billed on a monthly basis in accordance to a loan repayment schedule, not to exceed two years.
  2. Loan Amount: See ALLOCATION OF FUNDS SECTION below.
  3. Loan Proceeds: Funds shall be used for operational needs such as lease/mortgage payments, payroll materials, supplies and services.
  4. Successful applicants are required to execute a promissory note in order to receive funding allotment.

Eligibility 

  • Be a for-profit, independently owned local business. NOTE: Short Term Vacation Rentals (governed by Chapters 3.24 & 3.25 of the La Quinta Municipal Code), Realtors, and Residential Property Management Companies do not qualify to receive a loan under this program. (Commercial Property Management Companies do qualify).
  • Be a restaurant, retail, service, or entertainment business with a storefront physically established within the City of La Quinta;
  • Homebased businesses are eligible, but are limited to a maximum of $5,000 loan.
  • Have a current City of La Quinta Business License and have been in operation as of March 1, 2020;
  • Provide a written statement demonstrating a 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;
  • Comply with the City’s non-discrimination policy;
  • 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 La Quinta as of March 1, 2020 (e.g., no liens or judgments, etc.); and
  • Application is deemed complete by the Ad-Hoc Committee.

Allocation of Funds

In order to assist as many businesses as possible, upon approval, funding will be allocated as follows:

  • Businesses employing 0-5 Full-Time Equivalent (FTE) employees for up to $5,000
  • Businesses employing 6-10 FTE employees would be eligible for up to $10,000
  • Businesses employing 11-15 FTE employees would be eligible for up to $15,000
  • Businesses employing 16+ FTE employees would be eligible for up to $20,000
  • Home Businesses would be eligible for up to $5,000

Meaning of "Full-time Employee”

The abbreviation FTE is short for “full-time equivalent.” The City of La Quinta 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 10 hours per week, those employees equal one FTE.

Example of Weekly FTE Calculation:

If you have 5 part-time employees working a combined total of 120 hours per a week, this equals 3 FTE (120 hours ÷ 40 hours = 3).

REQUIRED DOCUMENTATION FOR ROUND II

All required documentation shall be attached to the loan application at time of submittal. Please use this checklist to ensure your application is complete. PLEASE PROVIDE THIS INFORMATION IN PDF FORMAT. High Quality Photos of ONE-PAGE items are permitted, any documents more than one page must be in PDF Format. 

  • Current City of La Quinta Business License
  • W-9 Form (can be found at https://www.irs.gov/pub/irs-pdf/fw9.pdf)
  • 2020 Balance Sheets and Profit-and-Loss Statements for the months of January,
    February, and March
  • 2019 Balance Sheets and Profit-and-Loss Statements for the months of January,
    February, and March to demonstrate hardship
  • Payroll records for the months of January and February 2020 (Confidential
    information such as social security numbers or employee birth dates should be
    excluded)
  • Tax Returns for 2018 and 2019 (If 2019 tax return is not done, a complete balance sheet with profit and loss is acceptable)
  • Proof of Monthly Rent or Mortgage Statement
  • Articles of Incorporation or Bylaws Supporting Documentation
  • Proof of Current FICO Score (can be found at https://www.freecreditreport.com/ without a hard check of your credit, or through your banking mobile app with a screenshot of the FICO score only)
  • Any additional supporting information the applicant wishes to submit
  • Fully executed and signed loan application form

If March 2020 financial statements are not yet prepared, banking records for March 2019 and 2020 demonstrating business losses may be accepted. Please redact the account numbers before submitting.

 

ROUND I - Award List, Score Sheet, Application

COVID-19 SMALL BUSINESS EMERGENCY ECONOMIC RELIEF PROGRAM APPLICATION (ROUND 1)

ROUND 1 - AWARD LIST[3]