SOAR Application Package
The Stabilization, Opportunity, and Resilience (SOAR) Loan Program was created to boost small business recovery in the wake of the COVID-19 emergency by providing short-term working capital loans from $5,000 to $20,000. SOAR loans will be used to (1) stabilize business operations or (2) allow businesses to turn adversity to opportunity or (3) make the business more resilient to future economic shocks.
- Loans from $5,000 to $20,000 will be based on demonstrated need for businesses in Modoc, Shasta, Siskiyou, and Trinity Counties.
- Business must be a for-profit corporation, partnership, LLC, or sole proprietorship.
- Business must be a small business as defined by the Small Business Administration.
- Business must be legal under federal law.
- Must be in business a minimum of two years.
- Historical loan repayment ability and adequate personal and business credit history must be demonstrated to qualify.
- Collateral will be dependent upon available collateral, strength of credit request, and size of loan. At a minimum, a UCC filing will be secured.
- A $500 origination fee, credit report cost, and UCC filing fee will be deducted from the loan.
- Interest rate is fixed at 5.00% for the term of the loan.
- Loan will be interest-only for six (6) months, followed by 36, fully amortized monthly principal and interest payments.
- There is no prepayment penalty; loan may be prepaid at any time.
- All 20% and more owners must personally guarantee the loan.
- All loan payments are to be made automatically via ACH.
- Loans are for working capital only and may be used for rent, payroll, inventory/supplies, utilities, etc. Funds may not be used to pay off existing debt, refinance other loans, acquire a position in a business, or to pay for any personal expenses.
- Additional terms and conditions may apply.
- Larger loan requests with alternate rates and terms may also be considered.