SACRAMENTO (Nov. 20, 2020) – With help from the California Infrastructure and Economic Development Bank (IBank) and a unique collaboration of public and private organizations, a new loan program to support small businesses is now accepting applications.
Governor Newsom made the official announcement today about the California Rebuilding Fund and it’s offering of flexible, affordable capital and free advisory services through community-based lenders located throughout the state. The fund was designed to ensure small businesses have access to support as they recover from the ongoing impact of the COVID-19 pandemic.
Loans from the California Rebuilding Fund will help small businesses retool, rebuild, and reopen with affordable credit.
The California Rebuilding Fund is a public-private partnership that drives capital from private, philanthropic, and public sector resources – including an anchor commitment of $25 million from IBank – to Community Development Financial Institutions (CDFIs). With the support of this new Fund, California’s CDFIs will be better able to help under-banked small businesses recover and reposition themselves to survive the realities of the COVID-19 marketplace.
“Lenders in communities across the state are determined to support the historically underserved small businesses, but they too have been overwhelmed by the capital needs resulting from the pandemic,” IBank Executive Director Scott Wu said. “This unique collaboration will capitalize the community lenders to get necessary funds into the hands of small businesses so they can continue to pursue their California Dream.”
The lenders will offer a standardized loan product with affordable and flexible terms for small businesses with loan sizes of up to $100,000 with a fixed rate of 4.25%. These loans are meant to be timed and structured to support businesses that have a path to reopening but face upfront expenses to pivot or retool their businesses for success in a post-COVID economy. The Fund will seek to distribute funds equitably across the state.
Small business owners will be asked to fill out a short pre-application before they are potentially matched with a community lender. Connect2Capital is hosting applications at www.CALoanFund.org.
The California Small Enterprise (CASE) Task Force, a collaborative of individuals and organizations across industries and sectors, is leading the development and implementation of the Fund, which will be administered by Kiva Capital Management. The Task Force is comprised of leaders from the community development sector, national and state-based nonprofit organizations, philanthropic donors and investors, attorneys and others.
IBank Contact: Gabrielle Stevenson, (916) 341-6658, Gabrielle.Stevenson@IBank.ca.gov
About the California Infrastructure and Economic Development Bank: IBank was created in 1994 to finance public infrastructure and private development that promote a healthy climate for jobs, contribute to a strong economy and improve the quality of life in California communities. IBank is located within the Governor’s Office of Business and Economic Development and is governed by a five-member Board of Directors. IBank has broad authority to issue tax-exempt and taxable revenue bonds, provide financing to public agencies, provide credit enhancements, acquire or lease facilities, leverage State and Federal funds and provide loan guarantees and other credit enhancements to small businesses. Find more information at www.ibank.ca.gov.
Mailing Address: P.O. Box 2830, Sacramento, CA 95812-2830
Main Telephone: (916) 341-6600, www.IBank.ca.gov
