La Quinta begins awarding small businesses interest-free loans

The City of La Quinta is giving out interest-free loans to help small businesses hit hard by the coronavirus pandemic.

The Small Business Emergency Economic Relief Program has 1.5 million dollars to lend to small businesses.

Margo Schwab, Owner of Infinity Hair Design, was excited to pick up her $5,000 check at La Quinta's City Hall on Saturday morning.

Schwab like thousands of business owners have been shut down since March 20th due to the coronavirus pandemic.

"Having this check in my hand just allows me to move forward with my heart and soul and everything in my passion and what I have dreamed of since 1978," said Schwab.

Schwab said it has been a frustrating ordeal for her to receive aid.

"I just thank God because it's so important to support ourselves and to support the people that rely on us," said Schwab.

Schwab is one of 36 small business owners, who was awarded funds through the city's economic emergency relief program.

And Schwab was not the only business owner to cash in at the city hall. Cathy O' Connell and Dorry Winham were also thrilled to be receiving a $5,000 as they remain closed.

“This check means we can help pay some bills, pay a small amount of payroll and keep things going," said O'Connell.

La Quinta based business owners are taking home a check ranging between $5,000 to $20,000. But the city council has decided to re-open the application process starting on Monday at 8 a.m. and closing it on Friday, May 15th at 5 p.m.

"We realized that there are other businesses besides the storefronts, your handyman, your caterers, the pest control businesses out there that work from their home and live in La Quinta that are also struggling," said Villalpando.

Gilbert Villalpando, Assistant to La Quinta's City Manager said the eligibility for this second round of funding allows businesses with over 25 employees to apply.

The program is funded through the city's economic disaster emergency reserve, which was created in 2018.

Businesses that have qualified for the zero percent interest loans will have up to two years to pay back the funds starting April 2021

There's still hope for a possible third round of help.

"There's still some cushion that why council went with the large amount of the 1.5 [million]," said Villalpando.

For more information on La Quinta's Emergency Economic Relief Fund. Click Here.