Encinitas Chamber of Commerce

COVID-19 Business Loan Program


On April 1, 2020, at a special meeting called to discuss COVID-19 pandemic recovery strategies, the Oceanside City Council directed staff to come back with recommendations for a loan program that would provide short-term gap funding to Oceanside businesses until federal funding arrives.

On April 22, 2020, the Oceanside City Council approved the use of $1.18 million in General Fund investment earnings to fund this program.

Application Period

All loan applications must be received prior to the City’s official declaration of the end of a local emergency due to COVID-19 or the expenditure of the $1.18 million allocated to this program, whichever occurs first.

Who is Eligible?

Independently owned consumer-oriented businesses engaged in retail sales and consumer services such as retail shops, boutiques, and restaurants located in Oceanside that have been mandated by government action or decree to close or significantly alter their business activity due to COVID-19 and have applied for federal or other emergency loan funds that will not arrive in a timely manner are eligible. Franchisees are eligible; however, should the number of applications exceed the funds available, priority will be given to non-franchised businesses. Businesses offering professional services such as real estate brokerages, property management firms, and insurance companies are not eligible. Lodging establishments are not eligible.

Eligibility Requirements:

  • Documentation showing that the business has applied for and been approved for other funding (federal, state or private lender) and that the funding will not arrive within 30 days
  • City of Oceanside business address that is not in a residential area or residential zoning district. Businesses in permitted commercial-use spaces in mixed-use developments are eligible.
  • A valid and current City of Oceanside issued business license that was issued prior to the COVID-19 crisis
  • Business must be current on any other governmental permits or certifications that the business is required to have
  • No outstanding fines owed or violations pursuant to any previously issued Oceanside Code Enforcement Notice of Violation(s) or Administrative Citation(s)
  • If the business does not own the building or the land where the business is located, it will be required to affirmatively declare that it was not in arrears on rent prior to February 29, 2020, and it must provide its landlord’s contact information
  • Borrowers and their immediate family may not hold a position as a city official or employee
  • Business must be open to the general public of all ages without restrictions

Loan Amounts & Terms:

  1. Loans from $2,500 to 5,000 with 0% interest if repaid within 180 days
  2. Loans from $5,001 to $10,000 with 1.5% interest if repaid within 180 days, 2.5% interest if repaid within a year
  3. Loans from $10,001 to $20,000, 2.5% interest if repaid within 180 days, 3.0% if repaid within 1 year, 3.25% if repaid within 2 years

Additional Required Documentation:

  • 2019 Profit & Loss Statement
  • Balance Sheet
  • Statement of Cash Flow

Loan Security:

Loan recipients will be required to execute a loan agreement wherein they acknowledge that the City will have recourse to the Borrower’s personal assets to satisfy any outstanding balances in the event of a default. The City reserves the right to require a personal guarantee on loans should it feel that is the best way to ensure that the loan is repaid.

Use of Funds Declaration:

Loan recipients will be required to affirmatively declare that any loan funds received from the City will be used to the benefit of the business physically located in Oceanside. The City will work with the Small Business Development Center to provide underwriting recommendations to ensure the businesses will have the ability to repay the City loan.


In order to maintain transparency for this program, business names, loan amounts and terms will be public information.

How to Apply:

Applications will be accepted beginning Monday, April 27, 2020 at 9 a.m. A live application form will be posted here at that time.


If you have questions regarding the City of Oceanside COVID-19 Business Loan Program, please contact Michelle Geller, Economic Development Manager, at mgeller@oceansideca.org or (760) 435-3351

Updated: 04/27/20