Areas Served: City of Mt. Shasta
The City of Mt.
Shasta, California offers two business loan programs.
Business Assistance Loan Program Under the previous grants seven loans have been made creating 26 jobs for local residents.
Money repaid from these loans goes into a Revolving Loan Account and the City will continue to make loans from this account as loans are repaid.
The main purpose of the Business Assistance Loan funding is job creation and borrowers are expected to create at least one job for every $35,000 they borrow.
In some cases jobs could also be retained, such as saving a failing business, but all loans must meet this 1 job to $35,000 ratio.
The jobs created must be for Targeted Income Group people.
The funding is best used to fill a financing “gap” in a given project.
For example, if a client has a $100,000 project and can only get bank and private financing totaling $65,000, a Business Assistance Loan can fill that gap.
Most loans are in the $35,000 to $70,000 range.
The City requires security for these loans, and a repayment schedule just as a commercial lender would.
Micro Enterprise Loan Program This program is similar to the Business Assistance Loan Program, except that these will be smaller loans, and the job creation can be satisfied with the business entrepreneur being a targeted income group member.
These loans would probably be in the $3,000 to $10,000 range, and there is limited funding available for these loans in each grant cycle.
Contact InformationCity of Mt. Shasta, California
Address: 305 N. Mt. Shasta Boulevard
City: Mt. Shasta
State: California
Website:
http://ci.mt-shasta.ca.us/finance/cdbg.php
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