ALAMEDA — The city may create a fund of up to $600,000 to provide grants or zero-interest loans to small businesses to help keep them afloat amid the coronavirus pandemic.
City Manager Eric Levitt told an online town hall meeting for local merchants and business owners Thursday that he planned to recommend the City Council approve launching a fund when it meets on Tuesday.
Businesses with 25 or fewer employees could apply, Levitt said.
“This is about how do we come out of this as a strong community,” said Alameda Vice Mayor John Knox White, who chaired the town hall, which attracted nearly 100 viewers.
The grant program would use money from the city’s general fund and other money currently earmarked to assist businesses at Alameda Point or to support businesses with façade improvements. It would provide up to 80 grants at a maximum of $7,500 each to local small businesses to help them with emergency working capital, according to city officials.
Levitt said other possibilities to help business owners include delaying collection of the city’s annual business license fee for up three months, which in Alameda is 40 cents per $1,000 of gross receipt or gross payroll, as well as the collection of the transit occupancy tax, which is added to the bill of hotel visitors. Currently, the tax’s rate is 10 percent and it generates about $1.6 million annually.
During the town hall, visitors posted questions or comments in a chat format, which Knox White scanned, reading some aloud and offering answers with Levitt.
Jennifer Ong said she liked that the city was about to consider a grant program for small businesses, while Sandy Russell asked if the city would support a marketing plan to help businesses when they reopened.
Knox White said he was open to the idea and suggested owners contact the city, which already has set up a webpage listing Alameda restaurants that are serving take-out during the health crisis.
“I am worried about short-term strategies to work with the long-term survival of businesses like the Alameda Theatre & Cineplex,” wrote Barbara Mooney. “I can survive short term with lower sales but the loss of something like the movie theater would have a huge long-term effect on Park Street.”
Elie Zgheib asked if the city going to make wearing masks or face covers mandatory when in public places.
Levitt said there were no immediate plans. “But I would not be surprised if we go in that direction,” he said.
A second town hall to update merchants and business owners is set for 2 p.m. April 21. A link to join the meeting will be posted on the city’s website, www.alamedaca.gov.
“The City Council, myself and city staff are very concerned about the well-being of our residents and businesses and the impact on their health and finances,” Knox White said, launching the town hall.
