On May 9, 2017, the California Infrastructure and Economic Development Bank (IBank) Executive Director, Teveia Barnes, announced a new microloan program is open for business in low-wealth communities.
The Jump Start Loan Program (Jump Start) helps small businesses in low-wealth communities start, grow and thrive. Jump Start’s goal includes assisting underserved groups such as women, people of color, veterans, the disabled and those previously incarcerated.
“Jump Start is designed to help people in low-wealth communities by providing microloans to start or expand a small business, such as a food truck, hair salon or repair shop,” Barnes said. “IBank will truly jump-start businesses for entrepreneurs that may not qualify for loans at traditional lenders or other programs because they are often too new or too small.”
Jump Start will expand IBank’s direct lending programs in its Small Business Finance Center to provide microloans from $500 to $10,000. Jump Start will also provide borrowers with tools beyond money by offering them technical assistance and financial literacy training to improve their chance of success. IBank contracts with Financial Development Corporations (FDCs) that have proven experience with microlending in low-wealth communities to provide the technical assistance, credit underwriting and loan disbursement. The Jump Start FDCs are conveniently located throughout the State in Sacramento, Salinas, Oakland, Fresno, and Los Angeles.
To qualify, borrowers must be considered low-wealth and be located in a low-wealth community. Each Jump Start Loan is expected to create or retain 1 to 4 jobs and have a positive impact on the State’s economy as well as the lives of the people it helps.
IBank’s Small Business Finance Center also has a Small Business Loan Guarantee Program and a Farm Loan Program. For more information, please visit the website.
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, and leverage State and Federal funds.
Find more information at http://www.ibank.ca.gov.