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ROSEVILLE, Calif. (KTXL) – Roseville City Council is telling more than 100 businesses that have taken out emergency loans for the COVID-19 pandemic that they do not have to pay the city back.
The city of Roseville acted quickly at the onset of the pandemic last spring by offering hard-hit businesses interest-free loans to cover the additional costs of keeping the open. About a million dollars in loans went to small local businesses rather than national chains.
“It’s moms and dads and they certainly don’t have the resources or the funding to close and reopen,” said Laura Matteoli, director of economic development for Roseville.
Some 115 companies have had three years to repay the city, but a recent sale of surplus assets allowed the city to write off those loans entirely without resorting to Roseville’s general fund.
It is a recognition that businesses continue to suffer.
Property manager Chris Airola told city council his calls for service have declined as costs to protect his staff rise. A $ 5,000 loan that he won’t have to repay saved his life.
“These loans have played an important role in keeping my business afloat and in keeping my 16 employees,” said Airola, owner of RentPros Property Management.
Businesses are still struggling, but the city is convinced that the economic aid has paid off.
“We were able to keep about 1,092 jobs, so we’re counting every job. So we’re really excited about it, ”Matteoli told FOX40.
Since the loans were made to keep local businesses in business, those that have closed permanently are still required to repay them. One of them returned the money before it closed for good and the door was left open to forgive the loans of a handful of others.
“To date we may know of two that might not be in business, so we think it’s been pretty successful,” Matteoli explained.
Money from the sale of surplus property was supposed to go into a citizens’ aid fund to support nonprofit groups, but city officials said it was possible that the money from the Federal aid can be used to replenish this fund.
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