In addition to the loan and grant programs offered through the City of Stockton, there are several other loan programs available to businesses interested in locating within the city. These programs include:
San Joaquin Revolving Loan Fund (RLF)
The $10 million San Joaquin County Revolving Loan Fund, administered by San Joaquin County Economic and Employment Development Department (EEDD), offers "gap" financing assistance to business owners or entrepreneurs in San Joaquin County. The loans made through the RLF are for working capital, equipment, leasehold improvements, and purchase of land and buildings to be used by the business. The RLF will take a subordinate position to conventional commercial lenders and SBA. The RLF will also consider loans with limited collateral and will offer terms of debt repayment. The RLF guidelines seek one job created or retained for each $20,000 of RLF dollars loaned.
- RLF loan packaging fees are waived for Enterprise Zone businesses.
- Businesses located within the Enterprise Zone receive a one-half percent interest rate reduction. Additional interest rate deductions are available if applicant is an export business or contracts to hire through the San Joaquin County Employment & Economic Development Department.
- Loans available from $25,000 to $1,000,000.
- Flexible repayment terms and no prepayment penalties.
Small Business Administration
SBA 504 Loans
The Tracy/San Joaquin County Certified Development Corporation (CDC) is the authorized provider of SBA 504 financing in San Joaquin County. The CDC will waive the deposit requirement for Enterprise Zone businesses. With a 504 loan, you get long-term, fixed-rate financing at a reasonable interest rate. And the best news is that you typically contribute only 10%. A 504 loan is for the purchase and use of long-term fixed assets such as land, building, and/or certain equipment.
Industrial Development Bonds (IDBs)
Small and medium sized manufacturers may benefit from Industrial Development Bonds which are a low-cost source of financing (bond financing can be as low as 75% of prime). In addition, the City and County will discount the packaging fee by 50%, resulting in a substantial up-front savings. Enterprise Zone projects receive first priority.
San Joaquin Delta College Small Business Development Center (SBDC)
Enterprise Zone businesses have free access to many of the services offered by the Small Business Development Center. These services include business plan writing assistance, consulting, mystery shopper/dinner programs, access to an SBA library, workshops, classes and more.
California Communities (IDBs)
This City of Stockton webpage last reviewed on --- 3/21/2011