Revolving Loan Fund Update, April 6, 2009
IN RESPONSE TO CREDIT CRISIS, MAYOR NEWSOM LAUNCHES SAN FRANCISCO SMALL BUSINESS LOAN FUND
TMC Development Working Solutions Selected to Operate the Fund
SAN FRANCISCO, CA – In response to the ongoing credit crisis, Mayor Gavin Newsom announced today that TMC Development Working Solutions (Working Solutions) has been selected to work with the City and County of San Francisco to administer the city's new Small Business Revolving Loan Fund (RLF).
The RLF will provide microloans of up to $50,000 to small businesses operating in San Francisco that create and retain jobs for low-to-moderate income San Francisco residents. RLF microloan interest rates will range from 4% to 6% with a loan term not to exceed 5 years. A total of $800,000 in Federal funds will be given to Working Solutions to administer the program over the next two years, with the possibility of additional Federal funds being added. In addition, Working Solutions plans to leverage the city's funds with up to $1 million in private capital.
All cities should be offering this type of financing for small businesses who need a boost during these tough economic times, said Mayor Newsom. We anticipate that there will be a high demand for these loans.
The launch of this loan program is being met with enthusiasm by the small business community. Regina Dick-Endrizzi, Acting Director of the city's Office of Small Business and Small Business Commission, stated, We have been receiving an unprecedented number of inquiries to our Small Business Assistance Center from business owners in need of financing. We are pleased to be able to provide this service and are confident that it will contribute toward the city's diverse efforts to keep small businesses thriving.
Working Solutions is a non-profit 501(c)(3) organization committed to providing underserved microentrepreneurs with the access to capital and resources they need to successfully start or grow viable businesses in an effort to strengthen the local economy, create jobs, and build strong communities. Working Solutions was created in 1998 as a pilot program within TMC Development, a leading Certified Development Corporation (CDC) specializing in SBA 504 commercial real estate loans (www.tmcd.com ).
Emily Gasner, Working Solutions' Executive Director, said, We are very pleased to offer our experience and commitment to the small business community of San Francisco through this program. We will be adding the city's capital to our own, in order to maximize the funding available for businesses here.
In 2008, Emily Gasner received the Financial Services Champion of the Year Award from the U.S. S.B.A - San Francisco District Office during San Francisco Small Business Week.
For more information, contact a Working Solutions representative at 415-655-5472 or visit the Working Solutions website www.tmcworkingsolutions.org. RLF microloans will be available starting April 15, 2009. Working Solutions plans to offer Chinese and Spanish language capacity.
Please review the RLF program information including borrower eligibility below to assess your preliminary qualifications for the program.
- A RLF borrower must operate a business that is located within the boundaries of the City and County of San Francisco, and
- A RLF borrower must create or retain at least one full-time equivalent job that is filled by a low-to moderate-income San Francisco resident, and
- Borrowers must meet the following minimum financial conditions:
- Debt Coverage Ratio: 125%
- Loan to Value Ratio: 75%
- Equity Injection: 15%