Santa Clara County Plans to Offer $ 6 Million in Low Interest Small Business Loans
The Santa Clara County Supervisory Board voted unanimously on Dec. 8 to partner with the state’s “California Reconstruction Fund”, hoping to provide up to $ 100 million in funding. county small business loans and immediately provide $ 6 million for low interest loans. for businesses as a first step in a phased approach to a larger loan program.
A contract for the program – first offered on Oct. 20 by county supervisors Joe Simitian and Susan Ellenberg – is expected to come back to the board for a vote in January.
Simitian applauded his colleagues for their support of the program.
âThese small businesses are the backbone of our communities, providing jobs and economic stability to hundreds of thousands of residents across the county,â he said. âThey are in desperate pain right now. “
Simitian noted that although the county’s own budget is strained due to Covid-19 spending and loss of income, âA well-structured loan program allows us to provide significant assistance while ultimately recovering funds. If we think about it, we can be both bold and cautious. “
The California Rebuilding Fund is a single member Public Benefit LLC managed by Kiva Capital Management that executes loan agreements from financial institutions and other lenders, and accepts donations for the fund. Local community development finance institutions will then lend to small businesses.
This initial allocation of $ 6 million is “just a first step,” Simitian said.
The county administration will report to council in February with options for further allocation and support efforts.
“By recycling and re-lending the funds as they are paid back to the county, we hope to leverage the funding we invest to lend larger amounts over time while minimizing the need for government dollars. county, âSimitian said.
â¢ Have a mandate of three to five years;
â¢ Range of $ 5,000 to $ 100,000;
â¢ Have an interest rate of 4.25%; and,
â¢ Be available to eligible small businesses with 50 or fewer full-time employees.
Pre-applications for the California Rebuilding Fund loan program are now being accepted at connect2capital.com/p/californiarebuildingfund.