The city of Marina extends its Covid relief loan program for businesses and residents.

In a special council meeting on Dec. 17, Marina City Council approved to extend its small business loans and residential loans programs to aid those who are suffering financially from the pandemic. These loans are in response to the latest stay-at-home orders that enter into effect on Dec. 13. 

They allocated $400,000 from the city's general fund for business loans. The deadline to apply is March 31, 2021, or until funds are depleted. This second round of loans was pushed by Councilmember Kathy Biala, who is also the secretary of Marina Chamber of Commerce. 

“We are trying to focus on those small businesses that are struggling the most,” says City Manager Layne Long. 

The previous plan, approved on April 21, allocated $100,000 for business loands and $50,000 to residents. It was set to expire on Dec.31.

During the first round, businesses had to document and provide their income, during the same months, from the previous year, and meet specific thresholds. They have since eliminated those requirements. “We just found that was too complicated for businesses,” Long says.

Instead of showing financial records, they have to fit a business category, Long explains. The target is non-essential businesses like clothing stores or other retailers, and restaurants that had to change operations due to Covid-19. 

The loans are directed at small businesses with fewer than 10 employees, or fewer than 20 for restaurants. Business owners have to provide proof of loss of income due to Covid-19, have a city business license, and a gross revenue under $1 million. They can apply for a loan up to $15,000.

“We think we’ll have over 100 that will qualify,” Long says.  

For residential loans, residents can apply for a loan of up to $3,500. Some of the eligibility requirements include being a resident since Jan. 1, 2020, having an income below 120 percent of Monterey’s County median income, and proof of reduction in employment or working hours. The last day to apply is Jan. 31 of 2021, or when funds are depleted.

The loans will have a 0-percent interest rate if paid back by Dec. 31, 2023. After that, the loan will have a 3-percent interest rate.

For more information, you can visit Marina’s  website or contact Accounting Manager Marisol Gomez (884-1203, mgomez@cityofmarina.org) or Assistant City Manager Matt Mogensen (884-124, mmogensen@cityofmarina.org).