State Announces New Loan Program for Small Businesses in Underserved Areas

Date: November 28, 2020

Applicants can request as much as $100,000. Not part of PPP. Not forgivable.

On November 20, the state announced a new loan fund for struggling small businesses called the California Rebuilding Fund, a joint public-private pool of money.

According to its website, “The California Rebuilding Fund is a loan program to support California’s small businesses—especially those located in economically disadvantaged and historically under-banked areas of the state. Businesses who employed 50 or less full-time equivalent employees (FTEs) and had gross revenues of less than $2.5 million or below in 2019 are eligible to apply. Full eligibility requirements are included in the Business Requirements tab.”

Warning

“Please note, this program is not associated with the federal Paycheck Protection Program (PPP) or any other SBA program. The loans are not forgivable in part or whole.”

According to a news release issued by Gov. Gavin Newsom’s office, “The lenders will offer a standardized loan product with affordable and flexible terms for small businesses with loan sizes of up to $100,000. These loans are meant to be timed and structured to support businesses that are adapting their business and face upfront or ongoing expenses to operate safely in a post-COVID economy. The Fund will seek to distribute funds equitably across the state.”

Where the Money Comes From

“The California Rebuilding Fund is a public-private partnership that drives capital from private, philanthropic and public sector resources – including a $25 million anchor commitment and $50 million guarantee allocation from the California Infrastructure and Economic Development Bank (IBank) – to Community Development Financial Institutions (CDFIs). With this new Fund, California’s CDFIs will be better able to help under-banked small businesses recover and reposition themselves to survive the realities of the COVID-19 marketplace.”

Where to Apply

“All interested small business owners can apply for a loan at www.CALoanFund.org, which will collect standard information about their business and match them with a community lender. If matched, the lender will assist the business owners with the application and provide free advisory support alongside a network of business support organizations organized by the California Association of Micro Enterprise Opportunity (CAMEO), Small Business Majority, California’s Small Business Development Centers and Women’s Business Centers. The portal will begin accepting applications at 12:00 p.m. PST on Friday, November 20 and can be accessed through the Fund’s website.

 

 

Related Content: Small Business News | California | Loans

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