Incentives and Assistance

If you're growing, expanding or locating your business in the City of Sacramento, it's a good idea to look at the many incentives available. Below is a summary of the easy-to-use programs that are available to new or expanding businesses, and development projects in the Sacramento area.

• Loan Programs
• Other Economic Incentives
• Small Business Administration Lending
  
  

Loan Programs

The Economic Development Department and its institutional partners have developed a wide array of loan programs to assist small business development in the Sacramento area. Designed to work in tandem or stand-alone, these programs provide innovative financing mechanisms for businesses from a start-up company to a substantial business expansion.

California Capital Loan Guarantee - provides guarantees on loans to small business owners who are unable to secure traditional bank financing. Additional services provided by California Capital include business plan analysis, entrepreneurial and small business education services, and referrals to lenders.

Commercial Revitalization Program - provides financial assistance for physical improvements to commercial properties located in designated areas. Eligible uses include improvements to exterior building facades (storefronts, awnings, lighting) and renovations to correct code violations and handicapped accessibility.

Greater Sacramento Certified Development Corporation - is a private nonprofit corporation established in 1985 to increase small business opportunities and to stimulate employment. Our role is to be a catalyst within community economic development programs in securing the resources necessary to assist small businesses in obtaining financing. The company is authorized by the U.S. Small Business Administration (SBA) to offer 504 loans to small businesses throughout the State of California. The 504 loan program is SBA's principal economic development tool to assist communities in stimulating expanding businesses through the utilization of the program. The 504 program offers long term fixed asset financing with a below market fixed interest rate, and as little as 10% down.

Grow Sacramento Fund - a local, community-based small business lender funded jointly by the Sacramento Municipal Utility District (SMUD) and the Sacramento Housing and Redevelopment Agency (SHRA). The program is available for businesses located within the city or county of Sacramento, and eligible for small businesses.

Sacramento Asian Chamber of Commerce Micro Loan Program

Sacramento Brownfields Loan Program - provides loans to property owners/developers for clean up and removal of hazardous materials from sites before they are developed. This reduced-rate financing is offered to encourage residential, commercial, and industrial redevelopment and to eliminate blight. To determine eligibility, contact Denise Malvetti, 916.808.7064 or dmalvetti@cityofsacramento.org.

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Other Economic Incentives

Small and large businesses in Sacramento can take advantage of many incentive tools based upon their specific location in Sacramento. Designed for ease of use by a local business, these programs have the potential to save hundreds of thousands of dollars. Many programs also contain a technical assistance component to maximize their effectiveness.

California Main Street Program - The Main Street Approach to downtown and neighborhood commercial district revitalization was developed by the National Main Street Center, a program of the National Trust for Historic Preservation. The approach is based on four points and relies on eight principles to produce fundamental change in traditional commercial business districts. Contact us for more information about this program.

Economic Development Treatment Capacity Bank - A program that assists commercial and industrial users in reducing their sewer connection fees. This program is available to those users who meet the City's guidelines and criteria for receiving credits via the Economic Development Treatment Capacity Bank. Click here for an application.

EDA Program - EDA's Economic Development Assistance Programs are designed to provide distressed communities and regions with comprehensive and flexible solutions for a wide variety of economic impacts.

Enterprise Zones/LAMBRA (Local Agency Military Base Recovery Area) - State tax credits, deductions and employment incentives are available for businesses located within any of Sacramento's state-designated Enterprise Zones or LAMBRA areas.

Sacramento Enterprise Zones benefits include:

• Sales tax credits on qualified property
• Wage tax credits for five years for hiring eligible employees
• 100% Net Operating Loss Carryovers available up to 15 years
• Rapid Expensing of Equipment
• Financing Assistance, Hiring Assistance through Sacramento Works!, and much more
  
  

Recycling Market Development Zone Program - is a partnership of local government, the State of California's Integrated Waste Management Board and local businesses. The Sacramento Regional Recycling Market Development Zone encompasses all of Sacramento County and the City of West Sacramento's Enterprise Zone in Yolo County. The program creates sustainable markets for diverted solid waste. The RMDZ program offers financial, technical, and marketing incentives to small and medium-sized manufacturers.

Redevelopment Funds - The City of Sacramento's Economic Development Department, SHRA and Capitol Area Development Authority (CADA) have funds available to provide financial assistance to development projects that meet the revitalization goals and criteria within any of the 12 redevelopment project areas located in Sacramento.

 

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Small Business Administration Lending

The Small Business Administration offers two loan programs that enable businesses to easily tap into this source of low-cost financing.

• SBA 504 Loan Program assists communities in stimulating growth and expanding existing businesses. The 504 program offers long term fixed asset financing with a below-market fixed interest rate, and as little as 10% down. SBA finances a maximum of 40 percent of a project (up to a maximum of $1,000,000), the private lender finances approximately 50% of the project via a separate loan to the small business, and the small business injects a minimum of 10 percent of the total project cost. The program also provides financing for the expansion of existing buildings and the acquisition of equipment.
• SBA 7(a) Program is available the purchase of land and improvements; existing building(s) and improvements; machinery/equipment; building construction of buildings(s); working capital; the purchase of inventory; and business buy-outs. The maximum guarantee loan amount is $2 million.
  
  
  

For more information on this program please contact Small Business Administration directly.