FINANCING PROGRAMS Business Resource Guide

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					                                                    FINANCING PROGRAMS
                                                      Business Resource Guide
                                                          1-800-266-3271




Financing Overview
          There are numerous public financing resources available to help you
          expand your business. The majority of the programs are provided in
          the form of business loans, but grants are available in a few
          circumstances. Other programs might not provide financing directly,
          but instead of an “incentive” to lenders, improving the likelihood that
          your loan will be approved. For example, the loan might be
          guaranteed by the state, or the lender might receive a tax credit on the
          interest it earns on the loan. Another option, if you have a solid
          business plan but your project doesn’t fit the requirements for a
          traditional loan, is venture capital. The venture capital network listed
          in this section can help you find investors.

          To assist you in determining which programs match your needs and
          qualifications, all of the financing options are presented here in a
          detailed matrix. The matrix will show you how much you can
          borrow, what the money can be used for, and who should be
          contacted to apply for each program.

          While the matrix will help you zero in on the most appropriate
          programs, don’t try to go it alone. Your Business Resource Specialist,
          city or county representative, EDC representative, or other expert can
          often help you structure a package that will make your money go
          farther. Some financing programs require your company to apply
          through either the local government or a public agency.




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                                                                                             Business Resource Guide
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Financing Programs
Program                           Uses                                Max. Amount /Terms                   Availability

Business Assistance               Commercial and Industrial.          Max: Negotiable*                     City of Porterville
Program (Commercial &                                                 Interest: Negotiable*                (commercial/
Industrial Rehab Fund)                                                Fee: Negotiable*                     industrial)
City of Porterville                                                   Terms: Negotiable*
(559) 782-7460
                                                                      *Depends on job creation

California Capital Access         Land and building acquisition,      Max: $2.5 million                    Entire county
Program                           equipment, working capital.         Interest: negotiated w/ bank
California Pollution Control      Loan losses guaranteed through      Fee: negotiated w/ bank
Financing Authority (CPCFA)       CPCFA.                              Terms: negotiated w/ bank
(916) 654-5610                                                        Bank must enroll in program
                                                                      through CPCFA

California Economic               Business expansion loans to         Max: $50-$500,000                    Entire county
Development Lending               small businesses that would         Interest: Call for details
Initiative (CEDLI)                otherwise be unable to obtain a     Fee: Call for details
(510) 267-8993                    loan from individual lenders.       Terms: Call for details

California Export Financing Guarantees export loans for               Max: $750,000 or 90%                 Entire county
Loan Guarantee              working capital made by                   Interest: negotiated w/ bank
(408) 986-8373                    designated banks.                   Fee: negotiated w/ bank
                                                                      Terms: negotiated w/ bank


California Hazardous              Equipment, changes in               Max: $20,000 - $150,000              Entire county
Waste Reduction Loan              production that reduce solid        Interest: Below market
Program                           waste generation or lessen          Fee: 2% at final closing
Valley Small Business Financial   hazardous waste properties of       Terms: 7 years
Development Corporation           waste generated.
(559) 271-9030

California Loan Guarantee Loan guarantee enables small                Max: 80%, up to $350,000             Entire county
Program                   businesses to obtain a loan for             100%, up to $25,000
Valley Small Business Financial   which they otherwise cannot         Interest: negotiated w/ lender
Development Corporation           qualify. Uses include business      Fee: 2% of amount guaranteed
(559) 271-9030                    expansion into new facilities       + $250 documentation fee
                                  and equipment purchases.            Terms: 3-7 years




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                                                                                                 Business Resource Guide
                                                                                                       1-800-266-3271




    Program                            Uses                               Max. Amount /Terms                   Availability

    Community Development              Off-site infrastructure, on-site   Max: varies by city                  Entire county
    Block Grants (CDBG)                improvements, new                  Terms: varies by city
    CA Dept. of Housing and            construction, rehabilitation,      Interest: varies by city
    Community Development              land acquisition, working          Fee: varies by city
    (contact city or county in which   capital, equipment, inventory.
    business is to be located)1        Application is made by the city
                                       or county.

    Commercial Rehabilitation Business location and                       Max: $20,000                         City of Dinuba
    Fund/Small Business RLF expansion projects.                           Interest: Call for details           (RDA)
    City of Dinuba                                                        Fee: Call for details
    (559) 591-5906                                                        Terms: Call for details

    Commercial Rehabilitation Call for details                            Max: Call for details                City of Exeter
    Fund/Small Business RLF                                               Interest: Call for details
    City of Exeter                                                        Fee: Call for details
    (559) 592-3318                                                        Terms: Call for details

    Commercial Rehabilitation Fixtures and equipment, when                Max: $35,000                         City of Tulare
    Fund                      bank financing unavailable.                 Interest: Call for details
    City of Tulare                                                        Fee: Call for details
    (559) 684-4203                                                        Terms: Call for details

    Direct Farm Loan                   Crop production, harvest loans,    Max: $350,000 (farm operating        Entire county
    Valley Small Business Financial    farm ownership, improvements,      or equipment); $300,000 (farm        (farming
    Development Corporation            equipment. USDA-FSA                ownership)                           enterprises)
    (559) 271-9030                     program.                           Interest: prime + 3% (variable)
                                                                          Fee: 2% + $300-$500
                                                                          processing fee
                                                                          Terms: 1 crop cycle (operating
                                                                          loan); 15 yrs (farm ownership)

    Disaster Loans                     Physical Disaster loans: repair    Max: Varies                          Federally declared
    U.S. Small Business                or replacement of real property,   Interest: 4% if other financing      disaster areas
    Administration                     machinery, equipment, fixtures,    cannot be obtained
    Fresno District Office             inventory, leasehold               Fee: Call for details
    (559) 487-5791                     improvements that incurred         Terms: Varies; max. 30 yrs
                                       damage in declared disaster
                                       area.

                                       Economic Injury loans:
                                       Operating funds until business
                                       recovers from physical disaster
                                       (such as crop freezes).




1
    See Local Services section for contact information in your area.
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    Program                        Uses                                    Max. Amount /Terms                   Availability

    Façade Financing               Rehabilitation of commercial            Max: Call for details                City of Lindsay
    City of Lindsay                buildings.                              Interest: Call for details           (redevelopment
    (559)                                                                  Fee: Call for details                area)
                                                                           Terms: 50% grant

    Façade Financing               Storefront rehabilitation.              Max: Current funding exhausted       City of Porterville
    City of Porterville                                                    Interest: N/A                        (redevelopment
    (559) 782-7460                                                         Fee: None                            area)
                                                                           Terms: 80% grant

    Façade Financing               Storefront rehabilitation,              Max: $30,000                         City of Tulare
    City of Tulare, Tulare         structural improvements,                Interest: Call for details           (redevelopment
    Improvement Program (TIP)      including signs.                        Fee: Call for details                area)
    (559) 684-4233                                                         Terms: Call for details

    Façade Financing               Storefront rehabilitation               Max: Call for details                City of Visalia
    City of Visalia                including signs.                        Interest: Call for details           (downtown)
    (559) 738-3361                                                         Fee: Call for details
                                                                           Terms: 15% business, 42.5%
                                                                           bank, 42.5% city

    Façade Financing               Storefront rehabilitation.              Max: Call for details                City of Woodlake
    City of Woodlake                                                       Interest: Call for details           (downtown)
    (559) 564-8055                                                         Fee: Call for details
                                                                           Terms: Call for details

    Golden State Capital           Matching network between                Max: negotiable                      Entire county
    Network                        entrepreneurs and investors; a          Interest: negotiable
    (530) 893-8732                 source of venture capital.              Fees: negotiable
                                                                           Terms: negotiable

    Industrial Development         Land/equipment purchase;                Max: $250,000 to $10 million         Entire county
    Revenue Bonds                  capital improvements.                   Interest: Tax exempt                 (Porterville
    CA Community Economic                                                  Fee: $1,500                          residents apply to
    Development Financing                                                  Terms: 5 to 7 yrs                    city; other
    Authority                                                              1 job created/$50,000                residents apply to
    (916) 322-3250                                                         20 jobs created /$1M in 2 yrs        state authority)
    Porterville
    (559) 782-7460

    Lenders Tax Credit2            To encourage loans that might           Max: negotiable                      Lindsay,
    Lindsay EZ                     otherwise be declined, the state        Interest: negotiable                 Porterville
    (559) 562-7117                 offers a credit to lenders for the      Fee: negotiable                      enterprise zones
    Porterville EZ                 net interest on loans made to           Terms: negotiable (through
    (559) 782-7460                 businesses operating in                 applicant’s choice of lender)
                                   enterprise zones.


2
    See also: Incentive Zones: “Enterprise Zones”
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                                                                                             FINANCING PROGRAMS
                                                                                                Business Resource Guide
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    Program                            Uses                              Max. Amount /Terms                   Availability

    Redevelopment Areas                Infrastructure improvements;      Max: negotiable                      Redevelopment
    City/County RDAs3                  industrial property               Interest: below market               Areas in cities and
                                       development.                      Fee: 1% app fee*                     uninc. county4
                                                                         Terms: negotiable

                                                                         *negotiable in Porterville

    Recycling Market                   Acquisition of real property,     Max: 75% of project up to            Cities of Dinuba,
    Development Zone5                  equipment, leasehold              $2 million.                          Exeter,
    Western Tulare County              improvements, working capital,    Interest: fixed, below market        Farmersville,
    (559) 688-6666                     refinancing of onerous debts.     Terms: 15 yrs depend on asset.       Tulare, Visalia,
    Porterville                                                          Project must produce product         and uninc. areas in
    (559) 782-7460                                                       that incorporates post-consumer      western Tulare
                                                                         or secondary waste                   County; City of
                                                                                                              Porterville

    Revolving Loan Fund (RLF) “Gap financing” for working                Max: $10-$100,000                    Entire county
    CDC of Tulare County               capital, machinery, equipment,    Interest: Fixed at prime
    (559) 688-6666                     real estate.                      Fee: 11 /2 %
                                                                         Terms: Machinery 7 yrs
                                                                         Real estate 20 yrs

    Revolving Loan Fund (RLF) “Gap financing” for working                Max: Up to 50% of project            Entire county
    County of Tulare                   capital, machinery, equipment,    Interest: Market or below
    (559) 733-6291                     real estate.                      Fee: 1 point, min. $100
                                                                         Terms: 25 yrs. depending on
                                                                         asset; 1 job per $35,000

    Revolving Loan Fund (RLF) “Gap financing” for working                Max: $250,000                        City of
    City of Farmersville               capital, machinery, equipment,    Interest: Call for details           Farmersville
    (559) 747-0458                     real estate.                      Fee: Call for details
                                                                         Terms: Call for details

    Rural Economic                     Construction, improvement, or     Max: $500,000                        Entire county
    Development (REDIP)                expansion of publicly-owned       Interest: varies
    CA Trade & Commerce Agency         infrastructure required for       Fees: none
    (contact city or county in which   construction or operation of a    Terms: 15 yrs
    business is to be located)6        private development.

    SBA 7a7                            Equipment, fixtures, leasehold,   Max: $750,000                        Entire county
    CDC of Tulare County               working capital, inventory,       Interest: negotiable
    (559) 688-6666                     refinance debt.                   Fees: can be financed
                                                                         Terms: 5-25 Yrs


3
  See Local Services section for contact information in your area.
4
  See Local Services section for contact information in your area.
5
  See also: Incentive Zones: “Recycling Market Development Zones”
6
  See Local Services section for contact information in your area.
7
  See also: Technical Assistance: “CDC of Tulare County”
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                                                                                             FINANCING PROGRAMS
                                                                                               Business Resource Guide
                                                                                                      1-800-266-3271




    Program                           Uses                                 Max. Amount /Terms                 Availability

    SBA 5048                          Long-term fixed asset                Max: $750,000 up to 40% of         Entire county
    CDC of Tulare County              purchases such as land and           project
    (559) 688-6666                    building improvements, new           Interest: market
                                      facilities, machinery and            Fees: approx. 3%
                                      equipment, construction.             Terms: 20 yrs; 1 job per
                                                                           $35,000

    SBA Microloan Program             Equipment, plant                     Max: $100 - $25,000                Entire county
    Valley Small Business Financial   improvements, inventory,             Interest: ≤4% over prime
    Development Corporation           permanent working capital.           Fees: same as SBA 7(a)
    (559) 271-9030                                                         Terms: up to 6 yrs

    Tulare Commercial Loan            Structural improvements,             Max: $35,000                       City of Tulare
    Program (TCLP)                    signage, fixture, equipment.         Interest: 5%
    City of Tulare                    Revolving loan fund.                 Fees: Call for details
    (559) 684-4203                                                         Terms: 5 yrs
                                                                           10 or less full-time employees
                                                                           Annual gross revenue <$35,000

    USDA Business & Industry Real estate, buildings, capital,              Max: 80% guar. to $5 million       Entire county
    Loan Guarantee           inventory, equipment; no                      70% guar. to $10 million
    Local Bank or                     construction.                        Interest: negot. w/ lender
    USDA Rural Development                                                 Fees: negotiable
    (559) 734-8732                                                         Terms: 7 yrs working capital
                                                                           15 yrs equipment
                                                                           30 yrs real estate

    USDA Intermediary                 Business and community               Max: 75% or $150,000               Entire county
    Relending Loan Program            development projects.                Interest: prime (variable)
    (IRP)                                                                  Fee: 2%+$300-$500 processing
    EDC of Tulare County                                                   fee
    (559) 688-6666                                                         Terms: 7 yrs




8
    See also: Technical Assistance: “CDC of Tulare County”
                                                                Page 3-6

				
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