Mayor Jesse Arreguin Creates Multi-Million Dollar Fund to Save Berkeley's Small Businesses and Legislation to Prevent Commercial Evictions
March 18, 2020
BERKELEY – Last night, the Berkeley City Council voted unanimously to create a multi-million dollar fund to address the growing economic fallout caused by COVID-19 and save Berkeley’s small businesses. In addition, the Council adopted emergency legislation to prevent the eviction of residential tenants and small businesses during this emergency.
“Our community is taking decisive action to slow the spread of a virus that can turn deadly, but these necessary measures are also spelling disaster for small businesses and their workers,” said Mayor Jesse Arreguin, who introduced the measures. “Social distancing is imperative, but it has and will continue to take a massive toll on the fabric of our communities. We are in this together, and I am so grateful to the generous souls who are pitching in to preserve Berkeley’s commercial corridors.”
Mayor Arreguin’s COVID-19 Relief Fund will be used to support small businesses and their workers who may be struggling to make rent. It will also assist arts organizations that have been significantly impacted by the pandemic. Members of the public who are able to donate will be able to contribute. The City of Berkeley will match the contributions with a starting donation of up to $3 million in public dollars.
Berkeley’s small businesses have seen a significant drop in customers, resulting in a 25-75% drop in gross receipts since the COVID-19 outbreak. According to the American Payroll Association, 74% of Americans live paycheck-to-paycheck.
In addition to the Relief Fund, the Council also unanimously enacted an urgency ordinance, making it one of the first cities in the state to prohibit the eviction of commercial tenants for non-payment of rent. The ordinance also prohibits evictions of residential tenants for non-payment of rent and no-fault evictions. Specifically, for individuals who demonstrate their inability to pay is a result of COVID-19, the ordinance prohibits a landlord or other entity from evicting or attempting to evict an occupant during the emergency. This ordinance is a result of the growing economic insecurity facing tenants and small businesses. Governor Gavin Newsom on March 16, 2020 signed an Executive Order, which among other provisions, allows local governments to adopt restrictions on evictions of residential AND commercial tenants. The prohibition against commercial evictions is a direct result of Governor Newsom’s Executive Order.
The actions come on the heels of the actions to aid Berkeley’s homeless population, which included 22 new sanitation stations that were erected across Berkeley, along with hundreds of outreach kits containing sanitizer and COVID-19 public health information sheets.