Stanislaus County to provide $1 million in coronavirus assistance to ailing businesses
Stanislaus County leaders on Tuesday approved a $1 million relief program for small businesses that are trying to stay alive during the coronavirus epidemic.
The Board of Supervisors unanimously approved the program Tuesday, providing up to $10,000 in microgrant assistance for eligible small businesses. The county will make 75 percent of the assistance available to businesses with 25 employees or less and 25 percent to businesses with 26 to 50 employees.
The county program, modeled after one in San Diego, could assist 100 struggling businesses with the $10,000 grants, county staff said.
Board Chairwoman Kristin Olsen pushed for the relief program to provide a bridge for struggling small businesses that are waiting for federal and state assistance.
“We have seen many businesses shut their doors,” Olsen said. “This is a really difficult time in our community. Hopefully, they will be able to reopen their doors (after the pandemic passes.)“
Bill Gibbs told supervisors through a telephone feed his building maintenance business has lost more than 50 percent of its accounts. “We need the help,” Gibbs said.
The county grants will be made available to business owners in the county unincorporated area and in the nine cities within Stanislaus County.
Hundreds of local businesses have struggled since Gov. Gavin Newsom issued an emergency order March 19 for consumers to stay home and for non-essential businesses to close temporarily in order to slow the spread of coronavirus. Leading health experts predict the novel coronavirus will remain a health threat in regions of California through May 31 and may not be under control until the end of June.
Under the criteria, the county program will assist businesses that have been in operation at least for a year. Applicants such as salons, brewpubs and restaurants will need to show proof of coronavirus hardships including employee layoffs, reduced business hours and shrinking sales.
The county plans to open an application window next Monday and accept requests for assistance through April 21. Public outreach with more details on the program will roll out this week.
The $10,000 grants can be used for payroll, rent, utilities, employee benefits and other needs. County staff members are still working on a methodology for reviewing applications and awarding the grants.
The county board cited a legal opinion that the grants are not a gift of public funds after businesses were told by government agencies to close their doors during the public health emergency.
According to a county staff report, businesses that are not eligible include lending institutions, insurance companies, gaming facilities, nonprofit groups, chain stores and home-based businesses.
County Supervisor Terry Withrow said it’s a small amount of county support that’s in addition to emergency assistance from the federal government and the state.
“Anything we can do to help people get through this time is something we should do,” Withrow said. “It’s a small amount but every little bit helps when you are struggling.”
Withrow said his accounting firm is helping many business clients to get connected with payroll assistance through the federal government.
The county said the Small Business Relief Program is in the spirit of a 2014 financial assistance program for homeowners who lost the use of domestic water wells during the state’s worst drought on record.
A remaining $250,000 in the emergency well program will be transferred to help fund the business relief effort. The bulk of the funding is $750,000 in community development funds. The county is working on an agreement for Valley First Credit Union to review the applications.
To learn more about the county’s Small Business Relief Program and apply for a grant, go to www.stanworkforce.com or call (209) 558-4473. The application window will open Monday. The county plans to award grants to eligible small businesses the week of April 20.
This story was originally published April 6, 2020 at 2:13 PM.
