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Superior California Economic Development
(SCED) offers business development loans to qualifying new
and established businesses in Modoc, Shasta, Siskiyou and
Trinity Counties.
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Program
Information:
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Basic Qualifications
- Be a "For Profit" business.
- Business located in Modoc, Shasta, Siskiyou or Trinity counties.
- Business owner be of good character and possess the ability and
experience to operate a financially sound business.
- Financed project to create or retain jobs.
- Demonstrate the ability to obtain other financing for project
costs not covered by the SCED Business Development Loan.
- Demonstrate the ability to repay the loan from profits generated
by the business.
Eligible Uses
- Business Start-up Expenses
- Business Acquisition
- Land and Building Acquisition
- Machinery and Equipment
- Inventory
- Working Capital
- SBA companion loan
Lending
Limits
- $5,000 to $250,000
- Maximum loan amount will vary depending on purpose & other factors
Loan
Terms & Fees
- Loans may be repaid over a term of up to 7 years, depending on
purpose.
- Interest Rate is fixed at the time a loan is made. Rates may vary
from 8% to 12% depending on various factors.
- Loan Fees are typically 2% of the loan amount
- Additional fees are charged for "third party" expenses such as:
credit reports, appraisals, etc.
Collateral
- Collateral is normally required on all loans and should have a
value equal to or greater than the loan amount. Any tangible
asset may be considered for collateral purposes.
Equity
Requirement
- Business owner to provide cash and/or equity injection of at least 10% of the total project costs.
How to
Apply for a Loan
- Business owner completes a basic loan application package.
This package also contains a list of additional information and
documents to be supplied by the business owner.
- Before applying for a loan, the business owner should assemble
some basic documentation including:
- Written Business Plan*
- 3 years personal tax returns
- 3 years business tax returns (established business)
- Personal financial statement
- Business financial statement (established business)
A loan application package may be obtained from one of the following SCED offices:
Shasta County
2400 Washington Avenue, Suite 301
Redding, CA 96001
or call (530) 225-2760
Background
The SCED Business Development Loan Program was established in 1980
with initial capitalization from the U.S. Economic Development
Administration. Additional Loan Program capitalization has been
funded by the USDA Rural Development Administration and by USDA Forest
Service for a total combined business loan fund in excess of $3.4
million.
The goal of the SCED Business Development Loan Program is to promote
the creation and retention of stable, living wage jobs in the region.
Objectives are:
- Provide business financing that might otherwise not be obtainable
from commercial lenders.
- Assist businesses to grow more rapidly and successfully, so they
may be able to obtain future financing from commercial lenders
(banks).
- Promote local and regional economic growth and diversification.
- Promote individual business employment creation.
Other business development financing
packaged by SCED:
- City of Anderson Loan Fund
- SBA 504 Loans (with participating bank)
- Community Development Block Grant Business Loans
- SCED Micro Business Loan Program ($500 to $5,000)
Other business development resources:
- SCED's Microenterprise Development
Program: Entrepreneurship training and technical
assistance.
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Local EDC's:
Industrial Recruitment, Enterprise Zones, Recycling Zones, Market
Development, Business Retention and Expansion.
- Employer Resources: Screening and referral of
qualified applicants, Business Assistance Hotline, Hiring Tax Credits,
and Employee Training Programs.
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