$25K in coronavirus relief loans get Oberlin Council's approval

OBERLIN — Three loans totaling nearly $25,000 received emergency approval from City Council on Monday, providing relief to businesses hard-hit by the COVID-19 pandemic. Two restaurants — Oberlin Kitchen and Black River Cafe — were approved for assistance of $10,000 each from the city's revolving loan fund. Optometrist Paul Alton of Ottica Eye Care was approved for $4,550. The zero percent interest loans are meant to prevent layoffs of low- to moderate-income workers, and businesses won't have to start paying them back for six months. Because the money comes from Community Development Block Grants, the loans must still be approved by the state, according to Oberlin Planning and Development Director Carrie Handy. Three more loan requests already have landed on her desk, with two more companies working on applications, she said. Council also voted to create another loan program to help sole proprietors and companies whose employees don't meet the CDBG income requirements. "There are a lot of people in this town who work on the gig economy who can't even pay their health insurance and are not eligible for other kinds of loans," Councilwoman Mary Price said. The $100,000 loan pool can be used by for-profits to pay rent, mortgages, payroll, utilities, and buy inventory and essential supplies. Finance Director Sal Talarico said the money would come from the city's general fund, from money earmarked for economic development. Oberlin Law Director Jon Clark said most of the time cities wouldn't be allowed to giving aid to private enterprises — but there are exceptions to preserve jobs and for economic development. "We've done a significant amount of research and consulted some outside folks in the auditor's department. And while there's no ironclad guarantee, I'm quite comfortable that it is legal and appropriate to institute these programs and provide these loans," he said. Handy said these loan applications wouldn't have to be approved by Council, but would go to City Manager Rob Hillard. Contact Jason Hawk at (440) 329-7122 or news@lcnewspapers.com.