Riverside County Office of Economic Development -Business Resource Guide

The New Markets Tax Credit Program (NMTC) provides a federal income tax credit for qualified equity investments in designated Community Development Entities (CDEs), e.g., community development financial institutions, such as banks, credit unions and venture funds. Substantially all the qualified equity investment must in turn be used to provide investments in low-income, underserved communities. For more information on the New Markets Tax Credit, visit: bit.ly/new-markets-tax-cred-prog FEDERAL FINANCING Rural Development Business & Industry Guaranteed Loans The U.S. Department of Agriculture (USDA) provides Business & Industry Guaranteed Loans in rural communities. Loan guarantee provided for up to 80% on loans ranging from $750,000 to $5 million and up to 70% on loans between $5 million and $10 million. For more information on Rural Development Business & Industry Guaranteed Loans, visit: https://www.usda.gov/topics/farming/grants-and loans. Section 108 Loan Guarantee Program HUD’s Section 108 Loan Guarantee Program is the loan component of the Community Development Block Grant (CDBG) providing communities a resource to fund economic development, housing, public facilities and large-scale physical development projects. Section 108 offers low-interest loans for a variety of economic development, housing, rehabilitation, public facilities, and large-scale physical development projects. For more information on the Section 108 Loan Guarantee Program, visit: https://www.hudexchange.info/programs/section-108. U.S. Small Business Administration (SBA) Small business is America’s most powerful engine of opportunity and economic growth. That’s where the SBA comes in. SBA offers a variety of programs and support services to help you navigate the issues you

face with your initial applications, and resources to help after you open for business.

Some of the more popular SBA loan programs:

7(a) Loan Program The 7(a) Loan Program includes financial help for businesses with special requirements. For example, funds are available for loans to businesses that handle exports to foreign countries, businesses that operate in rural areas, and for other very specific purposes. The loan proceeds may be used to establish a new business or to assist in the acquisition, operation, or expansion of an existing business. Microloan Program The Microloan Program provides small, short-term loans to small business concerns and certain types of not-for-profit child-care centers. The maximum amount of the loan is $50,000. Real Estate & Equipment Loans: Certified Development Company (CDC/504) Loan Program The SBA CDC/504 Loan program is a powerful economic development loan program that offers small businesses another avenue for business financing, while promoting business growth, and job creation. This loan can be used for: • The purchase of existing buildings • The purchase of land and land improvements, including grading, street improvements, utilities • Parking lots and landscaping • The construction of new facilities or modernizing, renovating or converting existing facilities • The purchase of long-term machinery • The refinancing of debt in connection with an expansion of the business through new or renovated • Facilities or equipment

For more information on 7(a) Loan Program, visit: www.sba.gov/7a-loan-program.

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