ECONOMIC DEVELOPMENT BLOCK GRANT PROGRAM
Business Assistance Loan Program
Business Assistance Loan Program Brochure
The El Dorado County Business Loan Program (BLP) is designed to provide the critical and necessary capital needs for business and real estate projects within the County and to increase the commercial and industrial base of the community. The Business Loan Program provides low interest rate loans to eligible business applicants, which will in turn create and/or retain jobs for low-income individuals. As program loans are repaid, the funds are then revolved and made available as loans to new business applicants.
Funding for this program is provided through the State Community Development Block Grant (CDBG) program and the County‘s revolving loan fund.
Eligible applicants include:
- Start-up or expanding private, for profit businesses, including corporations, partnerships, sole proprietorships and cooperatives that are incorporated and licensed, and are located in or locating to unincorporated El Dorado County
- The project must be commercial or industrial
- The applicant must demonstrate an ability to make repayment on the loan
Funds can be used to assist businesses through:
- Working Capital
- Inventory and Equipment Purchases
- Real Property Acquisition
- Construction and Rehabilitation
Loan funding guidelines:
- Loans ranging from $5,000 to a maximum of $100,000.
- Interest rates set based on the needs and demonstrated financial gap of each loan.
- The loan terms depend on the asset being financed, the economic life of the asset, the financial gap and the need for the loan, up to ten (10) years.
- The business owner is required to leverage one dollar for every loan dollar (on a case-by-case basis, this requirement may be waived)
- A loan fee of up to 1.5% may be charged to the borrower
- All loans are fully secured by collateral (e.g., liens on real property, deeds of trust, liens on machinery, equipment or other fixtures, lease assignments, personal and/or corporate guarantees, and other collateral, as appropriate)
Job creation/retention requirements:
For up to every $35,000 borrowed, the loan recipient is required to create or retain one full-time equivalent job (1,750 hours annually). A minimum of 51% of the jobs created or retained are to be filled by persons earning at or below 80% of the El Dorado County area median income for household size at the time of hire.
See the State Table of Income Limits for the current CDBG Income Limit Categories for El Dorado County at www.hcd.ca.gov/hpd/hrc/rep/state/incNote.html.
HOW TO APPLY
Call (530) 621-5159 or (530) 621-5158 for more information.
Financing by the County’s Loan Programs are subject to availability of funds.
El Dorado County Business Assistance Loan Program makes loans without regard to age, race, color, religion, gender, national origin, sexual preference, marital status or disability.