News from the City of Monterey Park

Deadline Extended for First Round of Small Business COVID-19 Relief Grant Program Applications

Note: business owners who missed the Jan. 13 first round deadline should visit https://careliefgrant.com/ for information about future rounds

The State of California has announced that the deadline for the first round of applications for the Small Business COVID-19 Relief Grant Program will be extended until January 13, 2021. Small businesses can apply for grants of up to $25,000.

The program, which officially opened December 30, 2020 experienced high traffic – receiving thousands of completed applications. However, due to the high traffic, some businesses may have had trouble accessing the application. Adjustments to the program’s website have been made and the application period has been extended to ensure that all interested applicants have the opportunity to apply. The Round 1 application deadline has been extended from January 8 to January 13, 2021 at 11:59 p.m.

This grant program is not first come, first served, nor a rolling approval process. All applications will be reviewed following the now extended application deadline. The funds will then be disbursed as originally planned to avoid any possible delay to small business owners receiving their grants.

The State’s selected intermediary, Lendistry, a Community Development Financial Institution, is working with other mission-based lenders and small business advisory and technical assistance providers to help small businesses with the application process in multiple languages and formats. Many of the State-supported small business centers, which prioritize the expansion of technical assistance to underserved business groups, are also available to help.

For more information on grant requirements and eligibility, as well as to find a local partner, please visit careliefgrant.com.

City of Monterey Park Offering Grants up to $1,000 to Restaurants for Food Delivery & Pick-up Costs

A critical concern for any restaurant is how to generate revenue during the shutdown restrictions forced by the pandemic. While customers are staying at home, promoting online takeout and delivery orders offers a lucrative income stream that works for all types of restaurants and not just fast food places.

Online ordering, phone apps and other restaurant technologies make it easier than ever to increase a restaurant’s sales of carryout and/or delivery items. Owners can easily increase business with carryout and delivery services, and they often work in a complementary way with outdoor and indoor dining room activities when things go back to normal.

However, there are some challenges to consider. Many restaurants are realizing that they’re taking a loss on every order through the delivery apps, so those orders don’t make economic sense. Beyond the fees, many restaurants said they felt that some delivery app companies weren’t good partners.

The City of Monterey Park Can Help

Effective January 1, 2021 to February 28, 2021, the City of Monterey Park COVID-19 Restaurant Delivery Assistance Program will reimburse restaurants up to $1,000 for food delivery and pick-up costs when using either one or all of the following four online delivery companies: Chowbus, DoorDash Storefront, Fantuan Delivery, and Hungry Panda.

In addition, Chowbus, DoorDash Storefront, Fantuan Delivery, and Hungry Panda are offering special discounted pricing, multi-language onboarding, and training for all Monterey Park restaurants participating in the program.

To be eligible for reimbursement and special discount pricing, the restaurant must be located in the City of Monterey Park and must be enrolled in the program. However, enrollment is limited to the first 120 restaurants on a first-come, first-serve basis, so businesses should act quickly and apply for enrollment now. Other restrictions apply.

The efforts businesses make to promote online delivery and carryout can more likely help restaurants come out of the pandemic on stronger footing.

To apply or for more information, please visit www.montereypark.ca.gov/econdev or call the Economic Development Department at 626-307-1385.

US SBA Offers Restaurants, Hotels Larger Loans from 2nd Round of PPP

The latest round of the Paycheck Protection Program (PPP) allows restaurants that can show a 25% decline or more in gross receipts to apply for loans up to 3.5 times their monthly payroll costs

January 11, marks the start of the US Paycheck Protection Program’s latest round, which will begin distributing loans to restaurants and other small businesses that are first-time recipients. On Wednesday, lending will expand to previous borrowers applying for a second PPP loan. The $284 billion fund is expected to distribute loans through March 31, 2021.

In the key change of the PPP-2, as the new round is being called, hotels and restaurants can apply for a loan up to 3.5 times their monthly payroll costs if they can show their gross receipts dropped by 25% or more, year-over-year, for at least one quarter in 2020. Under last year’s version, they could only apply for up to 2.5 times their costs.

Other types of businesses can apply for PPP-2 if they can show the same 25% drop in gross receipts, but they’re limited to the 2.5 times payroll amount. The new PPP-2 also allows businesses that received a loan under the first round to take a second draw.

This new funding brings a glimmer of hope for restaurants that have been able to survive months of ever-changing COVID-19 regulations and their impact on outdoor and indoor dining.

For more information and to apply for PPP-2, please visit the US Small Business Administration (SBA) PPP webpage at www.sba.gov/ppp.