A new San Benito County Chamber of Commerce program will aid local business owners in obtaining loan funds.
The Grow San Benito Fund offers loans ranging from $5,000 to $300,000. Terms range from 12 months to 120 months depending on the amount, purpose and other factors.
According to Chamber CEO Juli Vieira, the total fund amount is approximately $600,000.
“Interest rates now run about 6.5 percent, and for a business loan that’s a great rate,” Vieira said. “Anything under $50,000 can be approved in under two weeks.”
Loans must be used for business purposes only. Eligible financing purposes include working capital, equipment, refinancing of business debts, tenant improvements and commercial real estate (less than 50 percent owner-operated). Funding obtained through the program can’t be used for investment properties, pyramid-structured businesses or the purchase of equity for an existing business.
Businesses involved in real estate development, money lending or financing, multi-level marketing programs, illegal or polluting activities and adult businesses aren’t eligible for the fund.
The program funds are held by the Fresno Community Development Financial Institution. Funds were originally held by Hollister’s Redevelopment Agency, but had to be put with a successor agency when it dissolved.
“Jobs are a big reason why we’re here,” said Jeremy Hofer, senior manager of operations with Fresno CDFI. “These funds, the goal is to create jobs or retain jobs.”
Hofer said that access to capital is a huge barrier for startups and entrepreneurs.
“Banks are typically out for larger loans,” he said. “By offering these, it fills a need for small businesses.”
Applicants must be business owners 18 years and older. All owners with 20 percent or more ownership in the business must apply.
The fund requires a business plan, one year of cash flow projections and a minimum investment of at least 20 percent by the owner in addition to the application.
New businesses and startups can qualify for a maximum loan of $50,000. “Startup” is defined as any new business that’s generated revenue for less than 12 months or an existing business purchased in the past 12 months.
The chamber will hold an informational meeting regarding the fund on Thursday, Feb. 23 at 5:30 p.m. at The Wizard’s Cafe at Corbin.
For more information, contact the Chamber of Commerce at (831) 637-5315.
