Business Programs
Other Agencies' Programs

San Joaquin County Revolving Loan Fund
Employment & Economic Development Department Program

Financing Amount:

$25,000 to $1,000,000

Interest Rate:

market rates are fixed

Term:

up to 15 years depending on what is financed*

Helpful Hints:

1. Use is for working capital, inventory purchase, machinery and equipment, furniture and fixtures, leasehold improvements, gap financing, or any combination of the above.
2. The business must be located in San Joaquin County, able to repay debt, be creating or retaining jobs, and unable to secure alternate financing.
3. Eligible collateral includes personal and/or business real estate; equipment, inventory and accounts receivable; personal assets; and personal guarantees of major stock holders.
4. *Loan term up to five years for working capital and inventory, up to 10 years for machinery and equipment, and up to 15 years for commercial real estate.

Contact Information:

Employment & Economic Development Department
San Joaquin County
814 N. Hunter St.
Stockton, CA 95202
(209) 468-3615
sjcworknet.org

SBA 7(A) Loan Guarantee Program
SBA's Primary Loan Program

Financing Amount:

up to $1,000,000 (SBA guarantees private lenders up to 85% on loans of $150,000 or less and 75% on loans greater than $150,000)

Interest Rate:

both fixed and variable interest rates are available*

Term:

depends on use of proceeds and ability of the business to repay loan**

Helpful Hints:

1. The business generally must be operated for profit and fall within the size standards set by the SBA (SBA determines if the business qualifies as a small business based on the average number of employees during the proceeding 12 months or on the sales averaged over the previous three years).
2. SBA 7(A) loan proceeds can be used to expand or renovate facilities; purchase machinery, equipment, fixtures, and leasehold improvements; finance receivables and augment working capital; refinance existing debt with compelling reason; finance seasonal lines of credit; construct commercial buildings; and/or purchase land or buildings.
3. *Rates are no more than 2.25% over the lowest prime rate for loans with maturities of less than seven years and up to 2.75% for seven years or longer (rates may be slightly higher for loans under $50,000).
4. **Terms are usually five to 10 years for working capital loans and up to 25 years for fixed asset loans, such as the purchase or major renovation of real estate or purchase of equipment (not to exceed the useful life of the equipment).

Contact Information:

Employment & Economic Development Department
San Joaquin County
814 N. Hunter St.
Stockton, CA 95202
(209) 468-3615
sjcworknet.org

SBA 504 Real Estate Loan
Fixed Asset Financing (with low down payment)

Financing Amount:

up to $1,300,000; cannot exceed 40% of project cost

Interest Rate:

fixed interest rate

Term:

up to 20 years

Helpful Hints:

1. Use is for owner-occupied land acquisition, construction, purchase/remodel of building, building expansion, or major equipment purchase with a life expectancy over 10 years.
2. Must have commercial lender participation (project typically structured as 50% from commercial lender, 40% from SBA, and 10% down payment from applicant)
3. The ratio of SBA funds to new jobs created or retained should be at least $35,000: 1 job and meet SBA policy goals.
4. The business must have tangible net worth less than $6 million and net profit after taxes less than $2 million/year average over the past two years.

Contact Information:

Tracy/San Joaquin County Certified Development Corporation
1151 W. Robinhood Dr., Suite B-4
Stockton, CA 95207
(209) 951-0801
sjcdc.com

Tax-exempt Bond Financing
Large Scale Manufacturing Projects (up to several million dollars)

Financing Amount:

typical amount ranges from $1 million to $7 million

Interest Rate:

lower than market rates by about 2 to 3 percentage points

Term:

up to 30 years

Helpful Hints:

1. Company must be a manufacturer, i.e., make something through a "process" of assembly, chemical, fabrication, etc.  Final output of the manufacturing process is a marketable product.
2. Company must not have spent over $10,000,000 in capital expenditures in Manteca over a six-year period, including the cost of the project being financed.  The six-year period is defined as the three years prior to the issuance of bonds and the three years after the issuance.
3. The ratio of bond funds to new jobs created two years after the issuance must be at least $50,000: 1 job.
4. Company should have a good banking relationship.

Lawrence Tonomura
California Statewide Communities Development Authority
1470 Maria Lane, Suite 400
Walnut Creek, CA 94596
(800) 635-3993, ext. 10
ltonomura@cacommunities.com

Additional Government Financing Programs
Local Resource for County, State, and Federal Loan Programs

Contact Information:

San Joaquin Delta College
Small Business Development Center
56 S. Lincoln St.
Stockton, CA 95203

Phone: 209 954-5089
Fax: 209 939-0385
Web address: sbdc.deltacollege.edu

Local Commercial Lenders
Conventional Lending Institutions

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