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Numerous
low-interest loan packages are available to new and existing
businesses and industries within the zone. These funds are
intended to be used to create private sector jobs or to provide
services or goods to diversify and strengthen the Yuba-Sutter
region's economic base.
Eligible Use of Funds
-
Working
capital or startup capital
-
Inventory
and supplies
-
Acquisition
of machinery and equipment, furniture, and fixtures
-
Real
estate commission
-
Leasehold
improvements
-
Construction
costs
Examples
of Loan Programs
Revolving
Loan Fund (RLF) Program
Yuba County, Sutter County, Yuba City, and Marysville have
established revolving loan fund programs to assist businesses and
industries in satisfying capital needs. These loans are often used
as "gap" financing to complete a financing package. The
interest rates available are below market and may even be
deferred. The maximum loan amount available is $150,000, with a
requirement of one job created or retained for each $35,000
loaned.
Microenterprise
Program
Just getting started . . . no credit . . . This fund begins at
$150 to a maximum of $25,000. Designed for the individual
just starting out. The Microenterprise Training Program is a
prerequisite or a minimum of 12 contact hours with a consultant
from the Small Business Development Center (SBDC).
SBA and USDA
Rural Development Agency Loan Programs
The SBA 7A Loan Program is designed to assist the small
business in obtaining both short-term and long-term financing. The
interest rate will generally not exceed prime plus 2.75 percent at
variable rates. The down payment requirement for the small
business will be from 10 to 50 percent.
The SBA 504
Loan Program is designed to assist the small business in obtaining
long-term, fixed asset financing. The down payment requirement is
normally 10 percent, with a private lender providing 50 percent at
variable rates and 40 percent is provided through a debenture bond
at a fixed rate.
The USDA loan
program provides loan terms of up to 7 years for working capital
and 30 years for real estate. The equity requirement is 10 to 20
percent for existing businesses and 20 to 25 percent for new and
energy-related businesses.
Note:
This incentive is available to businesses both inside and outside
the zone boundaries. |
