Lacy’s Barber Shop is one of 51 black-owned, black-serving businesses in San Francisco that have had zero-interest loans of up to $50,000 forgiven, the mayor’s office announced Tuesday. The borrowed money came through the African-American Revolving Loan Fund, which was launched in June 2020 in response to the disproportionate cost that the first COVID-19 shelter-in-place orders were having on “non-essential” businesses. run by and supplying black residents. , including restaurants, hair salons, hair salons, gyms, art studios and other personal services.

Recipients could use the loans to help cover rent, payroll, equipment costs, business improvements and maintenance, as well as COVID-19 related expenses such as reopening costs, marketing or improving their online presence.

The revolving loan fund started with $1.5 million from the city and has grown to $6.3 million, mostly through philanthropic donations. A year ago, the mayor’s office estimated it would be able to help 150 businesses with the additional financial support.

So far, 51 companies have obtained loans through the fund. The mayor’s office credited the San Francisco Foundation and Aneel Bhusri, CEO of Workday, with providing the money that cleared a total of $2.3 million in loan debt for each of them. . About $1.3 million is still available for loan, the city said.

“By canceling these loans, we are enabling neighborhood and cultural institutions and Black business owners, especially those born and raised in our city, to come back from COVID stronger than ever,” said the mayor of London Breed in a statement.

Lacy is still trying to make that happen.

When his store closed during the lockdown, Lacy said he started making house calls to cut his hair to make ends meet. He said many customers haven’t returned since he was able to reopen in June 2021 and he was recently hit with a $1,400 water bill due to a leak he had. was not aware.

Before the pandemic, a good day for him meant five to 10 customers a day. On Tuesday, he only had one.

“I used the loan money to fix the store and rent two chairs to other barbers,” said Lacy, who lives alone above his store. “I’m grateful for the help, but business isn’t the same. I hope the hustle and bustle returns, that’s what I really miss – my customers.

The businesses whose loans have been canceled include 29 that have been in existence for at least 10 years and 25 owned by women, the mayor’s office said.

Andrea Stern’s yoga studio falls into both categories. She said it was nothing short of a jubilant shock when a city employee phoned her to tell her she wouldn’t have to repay her $50,000 loan.

“All is forgiven? Stern, 48, remembers thinking at the time. “It’s amazing and such a relief because so many small businesses are still barely succeeding.”

Stern had to close his Satori Yoga studio in October 2020, after 16 years in the Financial District. She has since moved her business online and also launched TendWell, an online wellness community.

Before the pandemic, she had about 12 freelance yoga teachers working in her studio, and now has at least 25 for her online classes. But because she intends to provide access to yoga and wellness to communities youwho don’t always have access to it, its sliding scale of $5 to $25 per class, while affordable for customers, is still not enough to set up a new physical storefront.

“It’s about building community online and in person,” she said. “Both are crucial to my businesses and although it will take time, I plan to get there.”

Shwanika Narayan is a staff writer for the San Francisco Chronicle. Email: [email protected] Twitter / Instagram: @shwanika