Road to Recovery Forgivable Loan Program

*Update 10/22: The application deadline for this program has been extended to Tuesday, October 27 at 5:00 pm.

*Si tiene preguntas o necesita ayuda para llenar esta solicitud, por favor llame al (510) 675-5319

This program is part of the City’s larger COVID-19 Response Grant Program which utilizes Federal Community Development Block Grants, Federal CARES Act funding, and other grant funding to support the community during this time.  Approximately $200,000 has been allocated to assist small businesses (25 employees or less) recover from and respond to impacts related to COVID-19. These funds are available as forgivable loans of up to $10,000.

See below for application requirements and link to on-line application. Paper copies of application can be provided upon request.  Application window opens up on Tuesday, October 6, 2020 @ 9:00 am.  

Note: Due to limited funding, the City will be accepting the first 50 applications and will be holding a lottery of qualified applicants.

Businesses Eligible for a Road to Recovery Loan:

  • For-profit, independently owned business in good standing with the City of Union City as of March 31, 2020 (current on City of Union City obligations, bills, liens, etc.)
  • Possess an active City of Union City business license
  • Have at least 9 months of business operations in the City of Union City
  • Employ no more than 25 employees, including the owner(s)
  • At least one employee lives in a CDBG eligible area (Census Tract or Block Group is more than 51% or more low income); OR
  •  To check whether an address is located within a CDBG eligible area, go to                           https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx
  • At least one employee meets eligible income requirements – current household income at or below 80% of County Median Income (see chart below) 

HUD Low Income Level for the Fiscal Year (FY) 2020 for Alameda County 


Household Size (Number of Persons)

12345678
Maximum Family Gross Income$73,100$83,550$94,000$104,400$112,800$121,150$129,500$137,850

Gross income is defined as all income received, before deductions, of all household members 18 years or older. Such income includes wages, salaries, unemployment, assets, disabilities, and pensions.

Liquor or tobacco stores and any business or activity that does not comply with local, state, or federal laws are not eligible for Road to Recovery Loans.

Eligible Loan Uses

  • Operating expenses including rent, mortgage, or utilities (up to three months of assistance in arrears);
  • Operational adjustments and / or improvements to support social distancing, sanitation, etc. including, but not limited to, installation of viral guards, touchless card readers, outdoor seating, etc. (Reimbursement basis)

This loan cannot cover expenses that have already been covered by other federal COVID-19 relief funding. If other federal funding is used to cover expenses already being covered by this program, or vice versa, it shall trigger immediate repayment of the full loan amount.

Loan Terms

  • Loan Amounts: $10,000 maximum 
  • Interest Rate: 0%
  • Term: 3 years
  • Loan Payment: first payment due on July 1, 2021
  • No prepayment penalty
  • The loan could be forgivable upon the applicant providing the City with a copy of a filed 2020 federal income tax return for the business
  1.  No other SBA, PPP, or other funds received shall be used to cover expenses being covered by this program
  2. If other federal funding is used to cover expenses already being covered by this program, or vice versa, it shall trigger immediate repayment of the full loan amount

Application Check List

  • Completed, signed application 
  • Documentation of previously received PPP loan, SBA fund, or any other COVID-19 federal relief funding, if applicable
    • Disclose dollar amount of federal relief funds used for COVID-19 response including, but not limited to, payment of rent mortgage or lease, utilities, payroll support, and purchase of PPE
    • Disclosure of delinquent or defaulted federal loans in the last seven (7) years, if applicable
    • Note: COVID-19 HUD or SBA Aid may affect benefit
  • 2018 or 2019 Business Federal Income Tax Return (latest year filed)
    • If business has been open less than one year, last six months of business bank statements are required
  • Copy of valid City of Union City Business License
  • Record of Payroll for the 2 most recent operational months: for each employee currently at the business, include
    • Name and address of each employee
    • Payroll amounts for each employee
    • If independent contractor, submit Form 1099 for each employee
    • See HUD Income Levels for FY 2020 above to confirm employee CDBG eligibility
  • Proof of delinquent payments: lease/rent/mortgage/utilities
    • Eligible documentation: overdue bill or letter from the landlord for no more than three (3) months in arrears
  • Copy of current Business Lease Agreement and Amendment showing current lease dates OR Copy of Deed
  • Profit-Loss Statement(IRS Schedule C, included in submission of Form 1040)
  • COVID-19 Response Business Plan:required as a condition of receiving the funds. If you don’t have one, you will need to respond to the following questions in the on-line application.
    1. What kind of business or non-profit do you operate? What type(s) of products and/or services do you provide?
    2. Company/Organization Description
      • Name of Company:
      • Address:
      • Date Business Started:
    3. If your business is less than 5 years old, please tell us about your business experience, or employment history, dating back 5 years from the date you started your business:
    4. Provide a projection of operating revenues for 3 months, 6 months, and 1 year from submitting application.
      • 3 Months:
      • 6 Months:
      • 1 Year:
    5. Provide a projection of operating expenses for 3 months, 6 months, and 1 year from submitting application.
      • 3 Months:
      • 6 Months:
      • 1 Year:
    6. Provide estimate of your year-to-date loss in revenue as a percentage of budgeted revenues (e.g. "revenues are 10% lower than budgeted year to date").
    7. How will you recover from COVID-19 (e.g. create marketing plan, develop methods to regain customer base, fundraising, etc.)?
    8. Provide a projection of number of employees for 3 months, 6 months, and 1 year from submitting application.
      • 3 Months:
      • 6 Months:
      • 1 Year:
    9. How will you ensure and maintain at least one employee who 1) lives in a CDBG eligible area (Census Tract or Block Group that is more than 51% low income) OR 2) meets eligible income requirements - 80% of County Median Income?
  • For Supplies/Materials for Preventing the Spread of COVID-19 (Reimbursement Basis): 
    • Itemized receipts/invoices of supplies/materials. In some cases, a photo and/or inspection may be required.
    • A description of how items purchased were used and how that assisted with COVID-19 response (i.e. protect staff and employees, maintain social distancing, etc.)
  • Documentation for Outdoor Business Operation Reimbursement: 
    • Itemized receipts/invoices of supplies/materials. In some cases, a photo may be required.
    • A description of what purchased items were used for (help maintain social distancing, physical barriers, seating, etc.)
    • Approved City permit for Temporary Outdoor Operations
  • Completed W-9 IRS Form IRS Form can be downloaded at https://www.irs.gov/pub/irs-pdf/fw9.pdf

Awarding the Loan

Businesses will have the opportunity to apply during the application period, but due to limited funding, the City will only be accepting the first 50 applications. City staff will confirm eligibility of the businesses, and a random lottery will be held to choose the loan recipients. The businesses that get picked in the lottery will be contacted via email. An agreement will be provided to the business outlining the terms and conditions of the award. Upon receipt of a fully executed agreement with the business, the City will disburse funds according to HUD regulations for up to $10,000.

The City will pay the landlord/bank/utility company directly in accordance with HUD Regulations.

All documentation will be placed in a business program file, and all activities will be recorded in the Integrated Disbursement and Information System (IDIS) for HUD reporting purposes. All information will be kept private and confidential. Applications will be reviewed for eligibility by Michael Baker International. 

Road to Recovery Forgivable Loan Program On-line Application (Application window opens Tuesday, October 6 @ 9:00 am)

If you have any questions regarding the program requirements or application process, please contact the program administrator.  If you would like to pick up or submit a paper application, please contact City staff.

 Program Administrator                                   City Contact

 Alec Vybrial                                                            Gloria Ortega 

 Michael Baker International                                     Economic Development Manager    

 (630) 808-9636                                                        (510) 675-5396 

Alec.Vybiral@mbakerintl.com                                   gloriao@unioncity.org