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. Each program identified below contains summary and contact information as well as a link to specific online documentation.
Grow Sacramento Fund (back to top)
Grow Sacramento Fund is a local, community-based small business lender funded jointly by the Sacramento Municipal Utility District (SMUD) and the Sacramento Housing and Redevelopment Agency (SHRA). Operated by SHRA, Grow Sacramento Fund is a member fund of the nationally respected Grow America Fund (GAF), the Small Business Administration (SBA) lending program of the non-profit National Development Council, a leading economic and community development organization. Since its establishment in 1996, Grow Sacramento Fund has provided over $4 million in loans to Sacramento businesses.
Grow Sacramento Fund provides SBA 7(a) guaranteed loans to eligible small businesses. The loans are available for businesses located within the City and County of Sacramento. Lending is targeted both to businesses that are expanding and growing their employment base, and to energy related ventures. Loan sizes can be as small as $25,000 and as large as $1,000,000. Loan terms can be as long as 25 years depending upon the type of financing, and rates are extremely competitive. Grow Sacramento Fund loans may be used for a wide range of business purposes, including real estate acquisition, leasehold improvements, machinery and equipment purchases, and permanent working capital. Grow Sacramento structures each loan individually to help meet the unique credit needs of each business. Presently, Grow Sacramento is unable to finance start-up companies. Grow Sacramento also cannot provide venture capital, fund research and development, or satisfy equity needs.
For more information please contact:
Molly Oser, Fund Administrator
Sacramento Housing and Redevelopment Agency -- Grow Sacramento Fund
630 I Street, 2nd Floor
Sacramento, CA 95814
(916) 440-1399, ext. 1414
E-mail: moser@shra.org
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Click on the Grow Sacramento icon to get more details or to download a pre-application form.
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Commercial Revitalization Program
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This program administered by SHRA provides financial assistance for physical improvements to commercial properties located in designated areas including portions of 12th Street, Del Paso Boulevard, Franklin Boulevard, Auburn Boulevard, Florin Road, Stockton Boulevard, Fruitridge Road, Broadway and the 65th Street/Folsom Blvd. Area.
Eligible Uses include:
- Improvements to exterior building facades including storefronts, awnings, lighting, decorative trim and security items.
- Renovations to correct code violations and handicapped accessibility.
SHRA can provide up to $50,000 in rebates to tenants or property owners that are making eligible physical improvements to the exterior of their buildings.
SHRA can provide loans up to $500,000 at below-market rates to assist with physical and structural improvements to commercial properties and can be utilized for building expansions up to 20%.
EnterFund Micro Loan Program
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EnterFund, administered by the California Capital Small Business Development Corporation provides direct "micro-loans" to small businesses -- including start-ups, newly established, or growing small businesses -- which are unable to access capital through conventional lenders. EnterFund was created by the Northern California Reinvestment Consortium (NCRC) to fill a unique and unmet credit need faced by many small and "emerging" businesses. In addition to giving individuals who have been historically underserved the financial opportunity to create and grow small and micro-businesses; EnterFund provides business training, consultation, and skill development. Also, clients are encouraged to build assets through an Individual Development Account (IDA), with matching contributions from EnterFund, as a means to achieve economic independence.
For more information download a pdf brochure by clicking here.
For more information on how to apply, contact:
California Capital Small Business Development Corporation
926 J Street, Suite 1500
Sacramento, CA 95814
(916) 442-1729
Fax: (916) 442-7852
California Capital Loan Guarantee (back to top)
California Capital is dedicated to promoting small business growth by providing financing to businesses. California Capital serves as an intermediary, providing guarantees on loans to small business owners who are unable to secure traditional bank financing. The maximum loan guarantee is 85% of the loan or $350,000, whichever is less. Loan proceeds may be used for equipment purchases, inventory, working capital, business purchases, lines of credit, contract financing, and to refinance existing debt. Additional services provided by California Capital include business plan analysis, entrepreneurial and small business education services, and referrals to lenders.
For more information on how to apply, contact:
California Capital Small Business Development Corporation
926 J Street, Suite 1500
Sacramento, CA 95814
(916) 442-1729
Fax: (916) 442-7852
Sacramento Brownfields Loan Program (back to top)
SHRA, in partnership with the City of Sacramento and the Capitol Area Development Authority, is providing loans to property owners or developers for the cleanup and removal of hazardous materials (with the exception of petroleum) from sites prior to development. This reduced-rate financing is offered to encourage residential, commercial, and industrial redevelopment and to eliminate blight.
Eligible Borrowers: Any owner or developer of a site in the City of Sacramento. Applicant should have strong financial capacity and a credible re-use plan. Federal regulations limit the eligibility of parties responsible for the contamination.
Ineligible Uses: Site assessment or characterization (such as a Phase I or II), sampling, workplan development; removal of petroleum-based contamination (funds are available from other sources). Emergency responses which must be completed in less than six months.
For more information on the program please call:
Andrew Reid, Fund Manager
Sacramento Housing & Redevelopment Agency (SHRA)
Development Services Department
630 I Street, 2nd Floor
Sacramento, CA 95814
(916) 440-1328
E-mail: areid@shra.org
E-mail: vcook@shra.org
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