In response to the COVID-19 crisis and shelter-in-place orders that temporarily shut down many small businesses in San Benito County, economic development partners determined there is a strong need for quickly accessible, small-sized loans to small businesses affected by those closures. Applicants must demonstrate they have been financially burdened by the COVID-19 public health emergency.
- Loan amounts range from $5,000 to $25,000.
- Interest rate of 2.44%, fixed rate, no pre-pay penalties.
- The maximum loan term is 5 years – fully amortized.
- The loans can have an initial payment deferment period of up to 6 months (interest still accrues during the deferment period).
- Loan proceeds can be used for working capital and may go toward business expenses, such as: Payroll costs, including costs for employee vacation, parental, family, medical, and sick leave, employee related insurance, rent, inventory, supplies/materials, utilities, professional services, and more.
- There is no application fee. Borrowers are responsible for paying a 2% origination fee and closing costs (e.g. credit report, recording a lien filing, Cal-Cap, etc.). These fees can be financed into the loan.