The San Mateo City Council Monday agreed to donate $400,000 in city funds to small businesses that have been affected by the COVID-19-induced economic shutdown.
The money will be sent to the San Mateo County Strong Fund, which was created by the San Mateo County Economic Development Association, or SAMCEDA, in response to the ongoing crisis. The San Mateo County Credit Union will then administer the funds through up to $10,000 grants specifically for small businesses in the city. Officials are also hoping larger employers will kick in matching funds.
SAMCEDA President and CEO Rosanne Foust during Monday’s remote City Council meeting said the grants are intended to cover rent, mortgage, payroll and health insurance “to keep people employed for approximately a two-month period.”
The program is designed for businesses with fewer than 10 full-time employees or less than $2.5 million in annual revenue. To be eligible, a business has to have been open for at least a year and must demonstrate a 25% reduction in gross revenue due to COVID-19, among other information.
Despite the significant impact the crisis has had on the city’s finances, officials said the donation can be absorbed and also described it as an investment.
“This is an investment in sources of revenue for the city. We want to keep these businesses open. It means the world to residents, but it’s also the lifeblood of local organizations as well,” said Mayor Joe Goethals.
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“The sooner we get small businesses back on track the sooner we all get back on track,” Councilwoman Diane Papan added.
During the meeting, City Manager Drew Corbett acknowledged there is greater demand for the program than there is grant money. Councilmembers suggested they may contribute more money to the program in the future and also expressed interest in providing relief money specifically to child care providers sometime in the future. Visit www.smcstrong.org to apply for a grant.
In other business, the council agreed to keep an affordable housing project known as the Downtown Opportunity Sites project on schedule despite the ongoing crisis. Nonprofit MidPen Housing is the developer of the project that includes 225 below-market-rate units in a seven-story building, up from the original proposal of 164 units. The size of the project was increased by the city leveraging Assembly Bill 1763, which allows for additional height and density in 100% affordable projects near transit.
Four residents spoke in support of the project.
During the meeting, Corbett also said a task force has been established to envision how the city might reopen in phases.
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