Business Loan Fund

The City of West Sacramento Business Loan Fund (BLF) is available to businesses expanding within, or moving to, West Sacramento.  The intent of the BLF is to provide assistance to business projects which will create full time permanent jobs and increase the economic base of the community.  The BLF is capitalized with funds from the State of California Community Development Block Grant (CDBG) Program and must comply with all CDBG requirements. 

Eligible Projects
Existing businesses that are expanding within the City and new businesses opening in the City are eligible for BLF funding.  The expansion/new opening project must create at a minimum, one new full time permanent job for every $35,000 loaned.  For businesses located outside the Redevelopment Project Area, at least 51% of the jobs created or retained must be filled by persons from households at or below 80% of the Yolo County Median Family Income.

Use of Loan Proceeds
Funds may be used for:

• Purchase of inventory, equipment, furniture and fixtures;
• Construction, rehabilitation and leasehold improvements;
• Real property acquisition;
• Infrastructure and off-site improvements;
• Working capital/lines of credit.

It is important to note that if any funds are used for construction, rehabilitation or leasehold improvements, the entire project will be subject to Davis Bacon wage requirements.  If BLF funds are used only for infrastructure and/or off-site improvement, the BLF funded activities will be subject to Davis Bacon.

Loan Terms
BLF loan terms are flexible and depend on the asset being financed, the project’s financial gap, the term of site control, the quality of collateral and the demonstrated need for the RLF funds.  Loans may not exceed twenty-five years.  A call provision prior to the loan maturity date may be incorporated. 

Interest rates are based on the needs and the confirmed financial gap of each project.  There is no loan fee or prepayment penalty.  All loans must be secured by collateral acceptable to the City.  Unsecured loans are not permitted.  Payments of principal and interest may be delayed or interest only payments may be allowed if the financial gap demonstrates that this is necessary to make the project feasible.

The BLF program can provide no more than one-half of a project's total financing requirements. 

The BLF may provide only the funds necessary to bridge a financial gap in the project.  BLF assistance may be in the form of a loan, a loan guarantee or interest subsidy.