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Please select from one of the following programs:

Revolving Loan Fund

Micro Loan Fund

SBA 7(a) Loan

Contact: Dave Mooklar, Loan Administrator can be reached at (805) 788-2015 or dmooklar@sloevc.org.

Description: An RLF promotes business growth by making loan guarantees available to local businesses unable to secure sufficient capital from the private sector. RLF allows for the continual reuse of a single sum of money. As the loans are repaid, the money is made available to other businesses and thereby "recycled".

Eligible Applicants: RLFs are typically administered by local governments and non-profit economic development organizations. Eligible applicants are local small businesses located within the jurisdiction of the administering agency. Borrowers must create one job for every $25,000 borrowed.

What is a Revolving Loan Fund?

The local jurisdictions are granted state or federal funds to create a Revolving Loan Fund (RLF). The funds are intended to create private sector jobs or to provide services or goods for low and moderate income persons and to diversify and strengthen the economic base.

RLF loans are used by businesses that are unable to obtain suitable private sector funding. A letter of denial from a conventional lender is required.

Loans are tailored to the capital needs of the individual business. However, these funds are limited therefore loans are structured for a scheduled period of time with a much shorter "call period" than conventional loans.

Loan Terms & Fees

• Maximum loan amount - $150,000
• Fixed-rate
• Terms are tailored to the capital needs of the business
• Loan fees - 2% of the amount of the RLF portion 

Public Benefit Requirement

• Create or retain one job for every $25,000 borrowed from the RLF
• Provide goods or services to residents where at least one low to moderate income person is served per $350 of borrowed funds

Use of Funds

The loan may be used for any of the following:

• Land costs, including engineering, legal, grading, testing, site mapping, and related costs
• Building costs including real estate, engineering, architectural, legal, insurance and related costs
• Acquisition of machinery and equipment, furniture and fixtures and leasehold improvements
• Working or start-up capital
• Refinance debt that threatens the stability of the business

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Contact: Dave Mooklar, Loan Administrator can be reached at (805) 788-2015 or dmooklar@sloevc.org.

Description: For business loans up to $10,000, sponsored by the EVC and the following banks: Mission community Bank, Mid-State Bank, Santa Lucia Bank, Heritage Oaks Bank, Coast National Bank, and Los Padres Bank.

Underwriting Standards
Loans to individuals targeted for this fund will require underwriting criteria that would not normally be acceptable under most banks' conventional loan programs.

In underwriting these loans to individuals to fund small micro enterprises the EVC will use the following lending criteria:

Eligibility

• Applicant and business must be located within San Luis Obispo County
• Loans range from $500 to a maximum of $10,000
• Maximum loan term is 48 months
• EVC must approve the borrower
• Credit check and loan servicing will be done by Mission Community Development Corporation
• Applicant should not otherwise qualify for credit
• Personal debt consolidation will not be considered

Purpose of Loans

The purpose of the Micro Loan Fund is primarily to start or maintain a small business, including:

• Purchase of equipment and vehicles
• Fixed asset expansion (i.e. lease hold improvements, furniture, fixtures)
• Working capital
• New venture

Collateral

• A perfected security interest consisting of a first lien in any asset financed by Micro Loan Fund proceeds
• Personal guarantee of participant

For more information and loan applications please call Dave Mooklar at (805) 788-2015

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Contact: Small Business Administration, (559) 487-5791

Description: Provides loan guarantees to meet both short-term and long-term financing needs. Funds can be used for: working capital, inventory, supplies, materials, equipment acquisition, some debt consolidation, business buy-outs, construction conversion, rehabilitation, or expansion. Loan guarantee by SBA up to 80%, maximum loan amount of $750,000, up to 25-year amortization, variable interest rate for qualified borrowers.

Eligible Applicants: Small businesses.

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