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Q: Does the City offer small business loans? A: The Mayor's Office of Community Development (MOCD) administers a revolving loan fund to provide access to capital for those small businesses unable to obtain financing through traditional sources. All small business loans are amortized repayment products. Only loans, not grants, available for start-up and expanding businesses.
Q: Where can I go to get a small business loan? A: If you have been turned down by your bank and would like information about the City's loan products, please contact either Susan Reynolds or Al Lerma. When you are ready to complete an application, you will be referred to one of MOCD's partner agencies to provide technical assistance including help in preparing your loan package.
A: Depending on your business' capacity to repay the loan, you can borrow up to $100,000. There is a job creation requirement that each loan must result in the creation or retention of one new permanent full-time job per every $35,000 borrowed. All jobs created or retained must be filled by lower income residents of San Francisco.
Q: Are there low interest rate loans? A: No, all loans are priced based on risk and are tied to market rates. Most loans will be priced at prime plus two to five points.
A: No, these revolving loan pools were originally capitalized through federal funds, therefore our guidelines are set along HUD parameters. Check with your bank for information on SBA guaranteed loans.
Q: Do I have to live in San Francisco? A: Your business must be located in San Francisco while it is preferred that business owners reside in San Francisco, it is not mandatory unless you are either a sole-proprietor borrowing less than $30,000 or a home-based business. Jobs created to satisfy public benefit requirements must be filled by lower income San Francisco residents.
Q: What do I need to do to apply for a loan? A: One of our partner agencies will assist you with your application, credit report, business plan, financial statements as well as explain which tax returns need to be submitted with your package. If you have not owned a business previously or are just starting a new business, you must take business training courses prior to applying for a loan. Additionally, collateral or equity in the business may be required for most loans granted by the City.
Q: Who will approve my loan and how long will it take? A: Once a completed loan package is submitted to The Mayor's Office of Community Development (MOCD), staff will review it for completeness and compliance with guidelines. A review of the financial analysis will be conducted and recommendations made to the loan committee. Once the committee has approved the loan, it is sent to the Mayor for final review. MOCD's goal is to have funds in the hands of the borrower within 45 days of completed package being submitted. Top |
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