City of San Marcos launches Business Sustainability Program in response to COVID-19
At the City of San Marcos, the health and safety of our community is our top priority. We are working around the clock to respond to the COVID-19 pandemic and address the needs of our residents.
The City also recognizes the significant negative impacts of the COVID-19 emergency situation on our local business community, particularly our small and independent local businesses. Many of the owners and employees of these businesses live and work right here in San Marcos.
At its March 24 meeting, the San Marcos City Council approved the City of San Marcos COVID-19 Business Sustainability Program. The program will set aside up to $3,000,000 of the City’s General Fund Reserves for short-term business loans.
The program will offer loans ranging in size up to $50,000, with fixed interest rates ranging from 0% to 3% based on the amount and duration of the term. Priority will be given to businesses with 10 or more employees for loans between $25,000 to $50,000.
“The COVID-19 emergency will undoubtedly have negative budgetary impacts on the City itself, and we will need to find ways to address them,” said City Manager Jack Griffin. “At the same time, we fully recognize the need to maintain a diverse and fiscally sound business community.”
Griffin added that, through decades of sound fiscal management, along with an entrepreneurial and business-friendly operational style, the City has developed and maintained reserves that can be used to carry the community through emergencies and economically stressful times.
Loan applications will be prioritized based on numerous factors, and applicants will be divided into three tiers based on the type of business and the extent their business has been affected by government mandates and public health guidelines related to COVID-19.
“Even in difficult times for the City, we believe that the right thing to do for our businesses and citizens is to invest in our businesses so that as many of them as possible can exit this emergency in as close a fiscal condition as when it started,” said Economic Development Director Tess Sangster.
All loan applications must be received prior to the City’s official declaration of the end of a local emergency due to COVID-19 or the expenditure of the $3,000,000 allocated to this Program, whichever occurs first.
For more information on the City's Response to COVID-19, visit www.san-marcos.net/covid19.