Business Loans



STATUS UPDATE – 8/25/2009

Small Business Revolving Loan Fund (RLF)

The City's Small Business Revolving Loan Fund application is now available through TMC Working Solutions.

Loan Amounts: $5,000 to $25,000 (Loans $25,001 to $50,000 are available as an exception for established businesses with 2+ years in business; underwriting criteria is more stringent.)

Interest Rates: 4% to 6% Fixed

Term of Loan: Up to 5 years, fully amortized

Basic Eligibility Requirements: All Businesses

" Have limited or no access to a bank loan
" Business is located in San Francisco
" Create/retain 1 full-time job made available for low/moderate-income individuals

Basic Eligibility Requirements: Startup Businesses

" Significant same industry experience
" Secondary source of income
" A completed written business plan
" Owner's equity injection into the business: at least 20% of the requested loan amount

Basic Eligibility Requirements: Existing Businesses

" Executive summary of the operations and management of the business
" Owner's equity injection into the business: at least 10% of the requested loan amount

Eligible Loan Uses

" Working Capital
" Inventory Purchase
" Equipment & Machinery
" Startup Costs
" Leasehold Improvements

Ineligible Loan Uses

" Personal expenses
" Debt consolidation/refinance
" Payment of existing business debt

Timing: 1 Month

" From the time TMC Working Solutions receives a completed loan application, it takes 7 to 10 days to receive a decision as to whether a loan request is approved or not
" If a loan is approved, it takes an additional 1 to 3 weeks to fund the loan

Loan Fees

" Application Fee: $25 nonrefundable
" Loan Closing Fee: 3% of the loan amount capped at maximum of $500
" Additional fees may apply in connection with securing collateral, returned checks, late payments and any prepayments made within three months of loan closing

Education and Technical Assistance:

" As a requirement of the loans, TMC Working Solutions creates an education plan of free and low-cost workshops about entrepreneurial topics for their borrowers to complete after they receive a loan.
" TMC Working Solutions also provides ongoing free technical assistance during the life of the loan

Contact and more information:

TMC Working Solutions
611 Front Street
San Francisco, CA 94111

Phone: 415-655-5472

HUD Section 108 Business Loans

The City is also working on an agreement to borrow up to $23 million in HUD Section 108 funds for business loans. Business loans may be available later in 2009 based on fund availability.

Details regarding final Section 108 business loan amounts, loan terms, and borrower eligibility will be available in the coming months.

Preliminary parameters for Section 108 business loans are as follows:

Section 108 business loan $500,000 minimum, and

Interest rates on Section 108 business loans will range between 0% and 8% depending on repayment term and level of risk, and

Section 108 business loan terms must be no longer than 15 years, fully amortized.

Preliminary parameters for Section 108 borrower eligibility are as follows:

A Section 108 borrower must operate a business that is located within the boundaries of the City and County of San Francisco, and

A Section 108 borrower must create or retain at least 14 full-time equivalent jobs that are filled by a low- to moderate-income San Francisco resident.

Section 108 loans will be administered directly by the City and County of San Francisco.

The Small Business Assistance Center is collecting contact information from business owners interested in receiving communications regarding these loans. You may contact the Small Business Assistance Center at 415-554-6134 or register online at

Federal Economic Stimulus Funds for Small Businesses

At this time, the City and County of San Francisco is still working out details of the Federal economic stimulus funding that may be available for small businesses. As we receive further information, we will publicize it accordingly.

Other Small Business Lenders

Please contact the following agencies for information on each of their loan programs.

Small Business Administration

The U.S. Small Business Administration (SBA) offers numerous loan programs to assist small businesses. SBA loan programs include 7(a) lender programs most basic and most used type loan of SBA's business loan programs; CDC/504 program is a long-term financing tool for economic development within a community; micro-loans up to $35,000, special purpose loans to help businesses meet demand internationally and to aid business that have been impacted by NAFTA; and disaster assistance loans for homes & personal property.

Special Note: The SBA received $730 million from the American Recovery and Reinvestment Act, providing the SBA with specific tools to make it easier and less expensive for small businesses to get loans, give lenders new incentives to make more small business loans, and help unfreeze the secondary markets to boost liquidity in the credit markets. Contact Small Business Administration, 455 Market Street, 6th Floor, San Francisco, CA 94105-2420,
(415) 744-6820,

Mission Economic Development Association (MEDA)

MEDA is dedicated to economic justice with its efforts focused on the Latino community and the businesses and institutions that serve them. MEDA offers microloans up to $10,000. Contact MEDA at (415) 282-3334 or

Northeast Federal Community Credit Union (Northeast)

Northeast is a non-profit, member-owned, federally insured, community development credit union formed in 1981. Northeast offers affordable loans to its members with savings accounts of $100 or more. Contact Northeast at for branch listings with phone numbers and hours.

Mission SF Federal Credit Union (Mission SF)

Mission SF is a federally chartered nonprofit community development credit union that primarily serves low and moderate-income communities in San Francisco. Mission SF provides personal and business micro-loans starting at $300. Contact Mission SF at (415) 431-2268 or

Opportunity Fund
Opportunity Fund provides small business loans to low-income entrepreneurs who cannot qualify for a traditional bank loan. Loans range from $1,000 to $200,000. Contact Opportunity Fund at (408) 297-0204 or

Southeast Asian Community Center (SEACC)

SEACC is a non-profit community agency that provides technical assistance and commercial loans of up to $35,000 to low-income entrepreneurs and small business owners. Contact SEACC at 415-885-2743 or

Working Solutions
Working Solutions is a 501(c)(3) nonprofit organization that provides underserved microentrepreneurs with the access to capital and resources they need to start or grow a business. Loans are from $5,000 to $25,000. Contact Working Solutions at 415-477-8415 or

Please contact the Small Business Assistance Center for any questions about loans or other assistance for small businesses in the City and County of San Francisco or 415-554-6134. The office is located in room #110 on the First Floor of City Hall with the Treasurer and Tax Collector.