Jun 30

Jun 30 Council approves $17.5 million to assist small businesses, members of the creative economy hurt by Covid-19

Building up business, Helping all people thrive, Cultivating a creative economy, Keeping people housed, Investing in young people

This post is one in a series, Sacramento for All, that will highlight what the City of Sacramento is doing under the leadership of Mayor Darrell Steinberg to lift all its neighborhoods and residents. In total, the City Council has allocated $47.5 million in federal relief funds for small business assistance, workforce training, youth enrichment, family services, homelessness and re-housing and the arts, creative economy and tourism. Another $42.1 million in federal stimulus funds remains to be programmed.

All told, the City of Sacramento has spent about $80 million over the last year and a half in Measure U and CARES Act funding to help struggling neighborhoods, provide activities and training for youth, help Sacramento families, reduce homelessness and create more affordable housing

Mayor Darrell Steinberg and members of the City Council Tuesday voted to allocate another $10 million in federal Covid-19 relief funds to help small businesses.

The new round of small business assistance brings the total allocated for small businesses to $22.1 million.

The $10-million forgivable loan program that began accepting applications for small businesses this week was increased by another $5 million Tuesday. Three-quarters of the loan fund is reserved for businesses located in disadvantaged zip codes. Council members also voted to allow more home-based businesses to access the money.

“Seventy five percent of these small business resources, or $15 million, will go directly to diversity, inclusion and equity,” said Mayor Darrell Steinberg. “That is our steadfast commitment.”

Another $5 million approved Tuesday will go to provide technical assistance to small businesses, including marketing, data collection and digital improvements, among other things.

The City Council also approved $7.5 million for the creative economy — part of a larger bucket of $20 million that the Council has broadly earmarked for that sector. Councilmember Steve Hansen said it was important to move forward quickly with the first allocation because many groups are struggling with closures related to Covid-19. The goal is to start getting money to individuals, organizations and businesses by August.

Recipients can include cultural institutions, arts and cultural organizations and individuals and businesses that support the city’s creative economy. More than $1 million of the fund is specifically allocated for recipients that represent inclusive culturally diverse communities and neighborhoods.