Loans available for local businesses

A non-profit organization is working with the Mayor's Office and SF Small Business Commission to provide loans for entrepreneurs during the current economic downturn. The loans range from $5,000 to $25,000 for new businesses and up to $50,000 for established businesses. The fixed-rate loan, with up to five years to repay, would have an interest rate varying between four and six percent.

A volunteer board will review all loan applications and render a final decision. The loans can be used for a wide variety of uses, including labor, rent, new equipment or utility expenses. They cannot be used for personal expenses or to pay off existing loans or consolidating loans. As well, the entrepreneur must make a 10 to 15 percent contribution on the total amount of loan requested.

The loans are being made by TMC Development Working Solutions. The organization has about $1.5 million to loan for new projects and other loans. Its funds come from several banks and the Mayor's Office of Community Investment. As a revolving loan fund, more money becomes available as existing loans are paid off.

On April 21, SF Supervisor Carmen Chu hosted a press conference to explain the program. Joining Chu were Small Business commissioners Regina Dick-Endrizzi and Irene Yee-Riley and the executive director of Working Solutions, Emily Gasner.

"Small business owners should take advantage of this program," Yee-Riley said.

There are about 121,000 businesses in San Francisco, with about 77,000 of them being sole proprietorships, according to Dick-Endrizzi. The small business commissioners also touted the value of the Small Business Assistance Center, which has helped small entrepreneurial endeavors grow and survive. The center, located in Room 110 at City Hall, has one-on-one assistance, customized check lists, technical assistance, and help with employee and other city, state and federal mandates.

Concerning the loan program, Gasner said it would take seven to 10 days to get approval for a loan, and then another two-to-three weeks to get the application finalized.

There will be several workshops to explain the loan program. A workshop in English will be held on May 5, at 455 Market St., sixth floor, from 10 to 11 a.m., and a workshop in Chinese will be held on May 7, at the Working Solution's office at 611 Front St., from 4 to 5 p.m.

For more information, call (415) 477-8415 or go to the Web site at www.tmcworkingsolutions.org.

- Paul Kozakiewicz