Areas Served: Merced county, California
The Merced County Revolving Loan Fund was created as a tool to supplement SBA and private financing.
It provides gap financing to businesses for projects that create jobs.
Revolving Loan Funds can be used for:
- Machinery and equipment
- Working and start-up capital
- Land Costs
- Other costs contributing directly to the project’s fixed assets, such as sales and use taxes and interest on interim construction financing
Repayment Terms:
- Fixed Assets: 10 years maximum
- Working Capital: 5 years maximum
- Inventory: 8 years maximum
- Equipment: 10 years or 80% of asset’s useful life
Interest Rate: Interest is set by the Loan Administration Board.
Typically, the interest rate is set below the prevailing rates in the area for loans of similar size, maturity and purpose.
Special Financing: Repayment schedules may be adapted to fit individual business circumstances.
Credit Requirements:
- Cash flow must be sufficient to service debt
- Adequate collateral must be pledged to secure the loan
- Personal guarantees of the owners are required
- Collateral and security can be shared on a participation loan on a pro-rata basis with the private lender.
Loan Amount Limits: $ 5,000 – $ 375,000
Contact Information
Merced County Department of Commerce
Address: 2222 M Street
City: Merced
State: California
Website:
https://www.co.merced.ca.us/945/Department-of-Commerce
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