In late 2020, the Federal Housing and Urban Development agency awarded Cathedral City an additional allocation of Community Development Block Grant (“CDBG”) funds through the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. Recognizing the difficult situation Cathedral City businesses are facing due to COVID-19, the City Council voted to create an economic assistance program (“Program”) for Cathedral City businesses. Currently, there is approximately $450,000 available for Cathedral City businesses.
Cathedral City businesses may qualify for financial assistance if they have been (i) impacted by COVID-19, (ii) maintain a physical presence within Cathedral City, and (iii) have less than 25 full-time equivalent employees are eligible to apply. Priority will be given to restaurants, retail store and personal care businesses. Personal care businesses include hair salons, barber salons, fitness-related businesses, nail salons, and other eligible businesses which have been inequitably impacted by COVID-19.
Cathedral City businesses may apply for only one of two programs. The programs are:
- A micro-enterprise grant. A micro-enterprise is a business with five or fewer employees, including the owner. If selected, a micro-enterprise may be reimbursed up to $7,500 for eligible expenses.
- A physical-improvement focused forgivable loan. Forgivable Loans are for businesses with less than 25 or fewer full-time equivalent employees that may apply for up to $20,000.00. To be eligible for forgiveness, the business must propose allowable expenses, comply with City quarterly reporting requirements, and meet all HUD requirements. More information is available on the application portal and will be provided in the coming weeks.
Please review the online application for further information. The submission of an application does not imply application acceptance or approval.