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<- Back to business resources main FINANCIAL AID PROGRAMS
PLACER COUNTY LOW INTEREST BUSINESS LOANS PROGRAM Placer County's Business Improvement Program (BIP) is designed to assist business and property owners with financing for projects that help to beautify property within the county's designated redevelopment areas, including the Kings Beach/Tahoe Vista area. BIP low interest loans provide up to 80 percent of a project's total cost requirements, in amounts ranging from $10,000 to $100,000, with available terms of up to 20 years. Interest rates are tied to prime, and are determined on a case-by-case basis. A maximum processing fee of one point ($500) may be charged. Loans must be secured by a deed of trust on real property or by equipment. Qualifying expenditures include:
For more information on BIP low interest loans, or to find out if a particular project qualifies, contact: Ron A. Yglesias Senior Redevelopment Specialist Phone: (530) 889-4016 Email: RYglesia@placer.ca.gov Downloadable Application Form PLACER COUNTY FORGIVABLE FACADE LOAN PROGRAM Placer County's Business Improvement Program (BIP) is designed to assist business and property owners with financing for projects that help to beautify property within the county's designated redevelopment areas, including the Kings Beach/Tahoe Vista area. BIP forgivable façade improvement loans provide up to 50 percent of a project's total cost requirements, in amounts ranging from $500 to $15,000, with available terms of 5 and 10 years. Loans must be secured by the property to be improved and by the personal guarantees of the borrower(s). Qualifying expenditures include:
The BIP loans are forgivable under the following circumstances:
For more information on BIP façade improvement loans, or to find out if a particular project qualifies, contact: Ron A. Yglesias Senior Redevelopment Specialist Phone: (530) 889-4016 Email: RYglesia@placer.ca.gov Downloadable Application Form SMALL BUSINESS ADMINISTRATION LOW INTEREST LOANS PROGRAM The SBA provides numerous loan programs to assist small businesses. It is important to note that the SBA is primarily a guarantor of loans made by private and other institutions. PROGRAM: Basic 7(a) Loan Guaranty FUNCTION: Serves as the SBA's primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. It is also the agency's most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes. Loan proceeds can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets. CUSTOMER: Start-up and existing small businesses, commercial lending institutions DELIVERED THROUGH: Commercial lending institutions www.sba.gov/financing/sbaloan/7a.htm SBA offers multiple variations of the basic 7(a) loan program to accommodate targeted needs. PROGRAM: Certified Development Company (CDC), a 504 Loan Program FUNCTION: Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. Typically a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost, and a contribution of at least 10 percent equity from the borrower. The maximum SBA debenture generally is $1 million (and up to $1.3 million in some cases). CUSTOMER: Small businesses requiring "brick and mortar" financing DELIVERED THROUGH: Certified development companies (private, nonprofit corporations set up to contribute to the economic development of their communities or regions) www.sba.gov/financing/sbaloan/cdc504.htm PROGRAM: Microloan, a 7(m) Loan Program FUNCTION: Provides short-term loans of up to $35,000 to small businesses and not-for-profit child-care centers for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. Proceeds cannot be used to pay existing debts or to purchase real estate. The SBA makes or guarantees a loan to an intermediary, who in turn, makes the microloan to the applicant. These organizations also provide management and technical assistance. The loans are not guaranteed by the SBA. The microloan program is available in selected locations in most states. CUSTOMER: Small businesses and not-for-profit child-care centers needing small-scale financing and technical assistance for start-up or expansion DELIVERED THROUGH: Specially designated intermediary lenders (nonprofit organizations with experience in lending and in technical assistance) www.sba.gov/financing/sbaloan/microloans.htm PROGRAM: Loan Prequalification FUNCTION: Allows business applicants to have their loan applications for $250,000 or less analyzed and potentially sanctioned by the SBA before they are taken to lenders for consideration. The program focuses on the applicant's character, credit, experience and reliability rather than assets. An SBA-designated intermediary works with the business owner to review and strengthen the loan application. The review is based on key financial ratios, credit and business history, and the loan-request terms. The program is administered by the SBA's Office of Field Operations and SBA district offices. CUSTOMER: Designated small businesses DELIVERED THROUGH: Intermediaries operating in specific geographic areas. www.sba.gov/financing/sbaloan/prequalification.htm SIERRA ECONOMIC DEVELOPMENT DISTRICT (SEDD) LOAN PROGRAM SEDD offers loans directly through its SBA Micro Enterprise Loan Program. This program Targets women, minorities, low-income individuals and others who cannot access financing through traditional credit grantors. In addition, SEDD can assist businesses within our region by guiding borrowers to banks for guaranty loans. Businesses can seek loan-packaging assistance (described below) from SEDD staff to develop the most likely financing sources. SEDD SBA Microloan Program SEDD's SBA Microloan Program focuses on the start-up of new businesses and the expansion of existing businesses. Microloans are available for working capital, furniture and expenses, machinery and equipment, supplies and materials, and startup/expansion expenses. Loans are in amounts from $1,000 to $35,000 and for terms up to six years. The SEDD staff workS with businesses to prepare all that is required to apply for a loan. After a loan is received the SEDD will help with marketing, finance, operation and other business needs. A $100 annual technical assistance contribution is required from loan recipients. SEDD Loan Packaging Assistance Businesses seeking traditional lender financing often need assistance in developing the presentation for the lender. When financing is needed to attain a new level of sales or develop new markets, the business often needs to demonstrate both feasibility and expertise in the field. SEDD staff can gather and prepare historical data as well as assist in the preparation of forecasts for loan packaging. SEDD staff will meet with business ownership to determine the request needs and develop a list of data needed. SEDD will then develop a package for the business owner to present to their existing lender or other potential lenders as desired. SEDD provides loan packaging assistance based on an hourly rate or package price after initial review. Prices vary depending on the complexity of the business and the loan request. SEDD staff has more than 25 years in commercial lending experience. For more information on SEDD loan programs contact: Betty Riley President/CEO Sierra Economic Development District Phone: (530) 823-4703 Email: betty@sedd.org http://www.sedd.org <- Back to business resources main |
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