The Covina Economic Development Loan/Grant program (Program) assists in the retention and attraction of qualifying Covina businesses in commercial locations. The purpose of the economic development assistance is to help eligible for-profit businesses meet a financing gap and to become independent, self-sustaining and successful. In return, the businesses will stimulate the economic vitality of the City through job creation and an increase in sales tax.
The Program, funded through federal Community Development Block Grant (CDBG) funds, is an activity designed to create permanent jobs where at least 51% involve the employment of low- and moderate-income persons. A business must be able to demonstrate that the CDBG assistance is necessary for new job creation or retention.
The assistance is designed as a forgivable loan. The business meets the CDBG National Objective of providing a benefit to low- and moderate-income persons through job creation. When compliance has been met for a twelve-month period, the loan is forgiven. In the event of default, repayment is required. Collateral for the loan is required.
Limited funds are available. Project funding is on a first-come, first served basis while program funding is available. The information provided on this page is of a general nature, and subject to HUD and other government regulations. For more information, or to discuss your project, please call Nuala Gasser, Senior Housing and CDBG Economic Development Manager at (626) 384-5442.
Additional information is shown below.
Click here to see the program flyer.
Click here to see a more detailed requirement and approval description.
The program policy is available here.
Categories of eligible businesses are:
QUALITY FOOD ESTABLISHMENTS
ART GALLERY AND SUPPLIES
HIGH-TECH INDUSTRIAL USES
MEDICAL AND DENTAL USES
Manufacturing is defined as follows: To be engaged in the production of something different and distinct from the original article. Substantial transformation is required, resulting in a change to its superficial appearance and altering its substantial character. Manufactured goods are goods made by machinery in large quantities, from primary goods such as steel and textiles, and baked goods.
Businesses to be considered will have their point of sale in Covina, and will have an office or storefront in a commercial location in Covina to take orders as well as a warehouse to fill the orders in Covina, and will meet the following criteria: add value to the community, create jobs, generate sales tax and leverage non-city funds. As defined here, e-business include e-tailing (direct selling) but not e-service (provision of service and tasks over the internet).