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There are a wide range of options and resources for financing your business start-up and expansion needs. If you are unfamiliar with financing terms and options, you may want to refer to the Small Business Administration's Introduction to Business Financing. The following is a list of local financial resources and programs; it is not an exhaustive list of financing opportunities that may exist for your specific endeavor. Because many investors, especially venture capitalists, develop expertise in specific industries, it may be worth your time to do a little extra research to find the best fit for your business model.
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Local Financing Resources
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Small Business Revolving Loan Funds
The County of Monterey has two Small Business Revolving Loan Funds (RLF). These RLFs were started to support the development of businesses and jobs that support the County's Comprehensive Economic Development Strategy (CEDS). The programs can provide loans of
between $5,000 and $250,000 and be used for equipment or land purchases and working capital. The basic requirements for both programs are one job created or retained per $20,000 loaned and a minimum private investment of 2:1.
For more detailed information or to apply for these programs, please contact California Coastal Rural Development Corporation at (831) 424-1099.
Industrial Development Bonds
Industrial Development Bonds (IDBs) are tax exempt securities issued by a company to finance acquiring, constructing, expanding, renovating or equipping qualified industrial warehousing, R&D and energy-related facilities. Because the interest earned on IDBs is tax exempt they usually have a lower interest rate than conventional bank or private loans. Since IDBs receive favorable tax benefits, businesses interested in using them must demonstrate a significant public benefit. In Monterey County this usually translates to direct job creation.
For more detailed information on IDBs, please contact the Office of Economic Development at (831) 755-5065.
California Coastal Rural Development Corporation
Salinas Office
221 Main Street, Suite 301
Salinas, CA 93901
Tel: (831) 424-1099
Fax: (831) 424-1094
Monterey Office
479 Pacific Street, #5A
Monterey, CA 93940
Tel: (831) 641-0722
Fax: (831) 641-0723
Cal Coastal is a California chartered Financial Development Corporation which provides loan capital and other financial services to businesses and farms located on the Central Coast. Cal Coastal has ten different loan programs that they manage, including the County's Small Business Revolving Loan Funds, and can work with you to structure a financing package to meet most business needs.
Central Coast Angel Network
The Central Coast Angel Network (CCAN) is a local Angel Investor Network that links businesses to equity investors. In addition to its core function, CCAN also provides a wide range of business education and networking programs.
For more information on CCAN and its services, CCAN can be reached at (831) 471-1671.
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State of California Debt Financing Programs
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Recycling Market Development Zones
The Recycling Market Development Zone (RMDZ) loan program provides direct loans of up to $2 million to businesses that use post-consumer or secondary waste materials to manufacture new products, or that undertake projects to reduce the waste resulting from the manufacture of a product. For more information on RMDZ loans, please contact Mandy Rose at (831) 636-4110.
Capital Access Program (CalCAP)
California Pollution Control Financing Authority
Attention: SBAF Program Manager
915 Capitol Mall, Room 466
Sacramento, CA 95814
Tel: (916) 654-5610
CalCAP insures bank loans made to small businesses to assist them in growing their businesses. Loans can be used to finance the acquisition of land, construction or renovation of buildings, the purchase of equipment, other capital projects and working capital.
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U.S. Small Business Administration
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The Small Business Administration (SBA) offers numerous loan programs to assist small businesses. It is important to note, however, that the SBA is primarily a guarantor of loans made by private and other institutions. To apply for one of the SBA programs, please contact California Coastal Rural Development Corporation, your bank or consult the list of SBA participating lenders. Programs available include the following:
SBA 504 Loan Program
This program was developed to stimulate business growth and expansion. The SBA finances a maximum of 40% of a project (up to $1,000,000), the private lender finances approximately 50% of the project via a separate loan to the small business, and the small business injects a minimum of 10% of the total project cost. The program also provides financing for the expansion of existing buildings and the acquisition of equipment.
SBA 7a Program
This program is available for the purchase of land and improvements; the purchase of existing buildings and improvements; the construction of buildings; the purchase of machinery / equipment; working capital; the purchase of inventory; and business buy-outs. The maximum guarantee loan amount is $1,000,000.
Micro-Loan Guarantee Program
This program is dedicated to promote small business growth by providing a means to offer small loans of $35,000 or less to businesses that are unable to obtain financing simply by virtue of the amount of the loan requested. The focus of this program includes, but is not limited to women, minorities, disabled persons and enterprise zone businesses.
Export Working Capital Program
This is a program to help small businesses obtain working capital to complete their export sales. The program, which replaces SBA's Export Revolving Line of Credit, encourages lenders to "bank" small-business exporter deals by significantly reducing the risk associated with the deals. The EWCP can support single transactions or multiple export sales. Under the program, SBA guarantees 90% (up to $750,000) of a private sector loan.
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Non-Profit and For-Profit Organizations
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There are a wide variety of organizations, including community based non-profits and for profit venture capital firms, that can also help you with your financing requirements. The Office of Economic Development, your local bank or other community organization may be able to help you find one of these organizations.
Count-Me-In
240 Central Park South, Suite 7H
New York, NY 10019
Tel: (212) 245-1245
Count-Me-In is an organization dedicated to providing loans to female-business entrepreneurs.
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Federal Government Grants
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The Federal Government has a number of programs, including grants, that private for profit and non-profit businesses may qualify for, depending on the specific program requirements. Many of the grants are related to research opportunities. To review current opportunities or receive notices of new opportunities refer to the federal grants Web site.
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