title
Consideration of modifications to and additional funding for the small business forgivable loan programs
body
Each year since 2015, the CDA has received a $40,000 allocation from the City for the small-business forgivable loan programs that have offered sign, façade, and code-compliance forgivable loans. In December 2024, $100,000 of ARPA funding was approved to provide additional funds and temporarily expand these programs to provide assistance for fixed building improvements, creation of outdoor spaces, and other limited services.
The new eligible program categories proved popular, and to date, the ARPA funds, as well as the CDA’s 2025 annual allocation, have been expended. At this point, a portion of the 2026 funding has been expended, and we have received applications for more funding than is available for the remainder of the year; also, a couple of businesses have inquired about applying in the near future.
If the CDA wishes to continue this program for the rest of 2026, other CDA funds will need to be used. Attached is a summary of the forgivable loan program parameters, covered expenses, eligibility, and amount of assistance provided. Eliminating the added ARPA program will conserve funds and preserve the initial purpose of the programs to invest the funds in maintaining a quality building stock. Additionally, the CDA could reduce the amount of assistance to provide 50% percent of the project cost up to $15,000 and/or limit the number of awards to one large forgivable loan per business/space.
Staff recommends the CDA set aside a portion of its available funding and make the above-mentioned program changes to continue offering forgivable loans in 2026 while we explore additional options to provide this type of assistance to the small business community.