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
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.
SBA and USDA Rural Development Agency Loan Programs
The SBA 7A Loan Program is designed to assist the small business in obtaininng both
short-term and long-term financing. The interest rate will generally not exceed prime plus
2.75 percent at variable rates. The downpayment requirement for the small business will be
from 10 to 50 percent.
The SBA 504 Loan Program is designed to assit the small
buisness in obtaining long-term, fixed asset financing. The downpayment 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. |