SAN JOSE (CBS SF) — With federal stimulus monies nonetheless tied up in Washington, Santa Clara County officers could also be taking a daring step to assist struggling small companies. The county may quickly be creating a brand new $100 million low-interest mortgage program for small companies.

“We are able to’t be holding our breaths to attend for the federal authorities to do proper by our native small companies,” mentioned county Supervisor Susan Ellenberg, who’s proposing this system this week together with Supervisor Joe Simitian.

Regardless of the additional easing of restrictions in Santa Clara County final week, small companies say they’re nonetheless struggling.

Tranquility Day Spa has open doorways and paying prospects, however proprietor Lieu Shultz says her enterprise continues to be off by half.

“A number of shoppers are nonetheless scared to come back again, although we’re following the rules, social distancing,” Shultz mentioned. “However nonetheless not but. I feel it can take some time.”

Ellenberg mentioned companies are struggling partially as a result of they’re following county well being orders.

“We hear from the companies who’re working at a fractional stage and they’re doing this as a result of they’re complying with public well being orders,” Ellenberg mentioned. “And I consider that we owe an obligation to assist them climate this storm.”

The proposal shall be launched on the Board of Supervisors assembly on Tuesday.

Particulars on how this system would work, together with partnerships with banks, and rates of interest could be labored out by county directors in coming weeks.

However Ellenberg hopes the county can again loans of $50,000 or extra. “I feel that is large and daring,” she mentioned.

Lieu Shultz likes the concept as a result of she desires to remain open however worries in regards to the particulars.

“I don’t need debt on high of debt, you already know?” mentioned Shultz.

Though the county faces a projected deficit of $285 million, backers say conserving companies alive may get monetary savings long-term as a result of employed employees wouldn’t want county security web companies reminiscent of housing, meals and medical.



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