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Congressman Panetta Announces $2.75 Million Grant for Santa Cruz County Small Businesses

February 23, 2021

Today, Congressman Jimmy Panetta (D-Carmel Valley) announced that Santa Cruz County will receive a $2.75 million grant in COVID-19 Recovery and Resiliency Project funding to help small businesses keep their doors open as they endure the pandemic. This federal funding comes from the CARES Act, which directs the Department of Commerce's Economic Development Administration (EDA) to allocate funding to municipalities.

As part of EDA's CARES Act Recovery Assistance, this investment capitalizes a $2,750,000 Revolving Loan Fund (RLF) to address the economic development needs of small businesses and entrepreneurs adversely affected by the pandemic in Santa Cruz, Watsonville, Scotts Valley, and Capitola. The project will be matched with $687,500 in local funds and is expected to create 18 jobs, retain 138 jobs, and generate $1 million in private investment.

"In order to help our small businesses survive this pandemic, we in Congress have continued to provide the federal funding necessary to help them succeed," said Congressman Panetta. "These types of funds from the Economic Development Administration will be used to recapitalize Santa Cruz County's revolving loan fund. Our local small businesses then can use these funds to not only stay open during this pandemic, but also to play a critical part our community's and country's economic recovery."

EDA CARES Act Recovery Assistance is administered under the bureau's flexible Economic Adjustment Assistance (EAA) program. It provides a wide-range of financial assistance to eligible communities and regions as they respond to and recover from the impacts of the coronavirus pandemic.