Businesses in the South of Market neighborhood can now tap into more than $200,000 in loans to help them grow as the rebound from the economic recession.
The loans range from $5,000 to $50,000 with fixed interest rates up to 6 percent over a five-year-term. The new $200,000 funding comes from the SoMa Community Stabilization Fund which collects impact fees from the development of the Rincon Hill Area Plan.
Since launching in April 2009 with $800,000 in seed funding from The City, the Revolving Loan Fund has helped 19 small businesses, totaling $451,785 in loans. Some of these businesses include Oasis Café, a café in the Western Addition, 51st State, a mobile food truck located downtown that serves American regional cuisine, and The Pretty Pretty Collective, a concept salon.
The loans can be used for working capital, improvement of real property, inventory purchase, equipment purchase and startup costs.
Mayor Gavin Newsom said the loans will help strengthen business in the South of Market neighborhood — an area that’s seeking to draw new companies.
“Securing the capital needed to start a new venture or expand an existing operation remains difficult in this economy, whether you own a start-up retail business on Sixth Street or the next big social media company,” Newsom said.
To qualify for a loan, a business must be located in SoMa and have limited or no access to a bank loan. A small business is defined in San Francisco as independently owned and operated, not dominant in its field and with 100 or fewer employees.