Crescent City unveils $1.5 million CDBG small‑business loan program; $500,000 first round opens Monday

City Manager Eric Weir and consultant Jeff Lucas told a standing room audience at a public workshop that the city has secured a $1.5 million Community Development Block Grant to fund low‑interest business loans and job creation in Crescent City.

Jeff Lucas, of community development services, said the program will offer loans at a 1% fixed rate that can be forgiven if a business creates or documents retention of eligible jobs for one quarter. "That's a pretty good deal," Lucas said, describing underwriting that will verify payroll, hours and household income to protect public funds.

The program will emphasize job creation measured as full‑time equivalents (1,620 hours annually, about 30 hours per week). Lucas said the city values one full‑time equivalent at about $35,000 in loan funds. Loans can be used for equipment, inventory, working capital or debt consolidation; Lucas cautioned that using federal funds for construction triggers Davis‑Bacon prevailing wages and often makes small construction projects cost‑prohibitive.

Eligibility and application process

Officials said the first $500,000 of the $1.5 million grant will be available in an initial round. A pre‑application portal will open at 08:00 Monday at ccbusinessloan.com; pre‑applications will be time‑stamped and processed in order to establish a review queue. Paper pre‑applications will be available and time‑stamped at City Hall for applicants who cannot access the portal.

Bridget Lacy, participating online, said the pre‑app is a basic eligibility check (for example: is the business in Del Norte County, is the applicant creating a job) and will not accept uploads. The city and consultant will request full applications from the top pre‑app applicants and work one‑on‑one to complete documentation.

Documentation, underwriting and security

Lucas said the program will run detailed credit checks and underwriting, and that applicants must provide payroll records to prove hires. While the program accepts lighter collateral (equipment, inventory) it will require a personal loan guarantee; officials emphasized they will not require homeowners to put up their house as primary collateral for typical loan sizes.

On income eligibility, Lucas gave Del Norte County examples: for a family of four the low‑to‑moderate‑income threshold would be about $75,000; for a single person about $56,000. He said 51% of jobs created with CDBG funds must meet the low‑to‑moderate‑income requirement.

Timing and follow‑up

Lucas said he expects to report back to city leadership the Monday after pre‑apps are received to summarize demand and next steps. He estimated the program could begin approving loans in roughly three months, depending on applicant completeness and volume. The grant period runs roughly 2½ years, so earlier disbursement gives businesses more time to meet job‑creation requirements.

Other details and city planning

Officials confirmed forgiven loan amounts will likely be treated as taxable income in the year of forgiveness. The program is limited to for‑profit businesses; nonprofit organizations are not eligible for these business loans. City staff tied the loan effort to a downtown master plan and said a public meeting on the downtown plan is scheduled for November 6; the downtown plan is posted at ccdowntownsplan.com.

Next steps

The pre‑application will go live at 08:00 Monday at ccbusinessloan.com; paper pre‑apps will be time‑stamped at City Hall. Jeff Lucas and city staff said they will help applicants complete full applications after the pre‑app stage and that the city will publish loan awards and recipients in accordance with CDBG reporting requirements.

Jeff Lucas said the consultant team has experience administering thousands of similar loans and that the city intends to use the program as a catalyst for filling storefronts and supporting businesses in the downtown master plan.