Small Business Loan Program

The City of Elk Grove Loan Program is funded through a federal Community Development Block Grant and provides local Elk Grove businesses with a low-cost financing option for their business.

Eligibility Requirements:

  • Business located within the incorporated City limits of Elk Grove, CA;
  • A valid City Business License, insurance, and any other applicable permits, licenses, certifications, etc.;
  • Applicants must create one or more new full- or part-time permanent jobs (a business may also qualify for a loan to retain existing jobs if the business is otherwise in danger of closing);
  • Any new jobs created or retain must be filled by a person from a low-income household as defined by the U.S. Department of Housing and Urban Development (HUD);
  • Payment of a credit check fee of $35
  • Minimum credit score of 600

Loan Terms:

  • Loan amounts may vary from $3,000 to $25,000
  • Loan term may vary depending on amount and collateral but will not exceed five (5) years;
  • Interest Rate based on the Local Agency Investment Fund (LAIF) plus up to an additional 2%

For complete details on eligibility, use of funds, the application and approval process, please see the  Small Business Loan Program Guide.

Application Process

  1. To apply for a small business loan, please complete an application form, including all attachments and business financials.  For a complete list of required materials, please see the “Application Checklist” on page 2 of the Application Packet.
  2. Submit your completed application and all required forms to the City’s Economic Development Department.  You may submit electronic or hard copies.  If you prefer to submit electronically, please call the City’s Economic Development Department at (916) 691-2489 to request an email address for the appropriate contact.
  3. The Economic Development Coordinator will work with you to ensure your application is complete and thorough and that all minimum requirements have been met.  When your application is ready, it will be submitted to the City’s Finance Department for review.
  4. The Finance Department will review the application and all required forma and make a recommendation of approval or denial.
  5. Your application packet and the Finance Department’s recommendation will be sent to members of the City’s loan advisory Group who will then review it and make a recommendation of approval or denial.
  6. Applications that have been recommended for approval will be sent to the City Manager for a final decision.

Receipt of Loan Funds

Applicants that have been approved for a loan shall enter into a loan agreement with the City; below is an example of the loan documents applicants will be required to sign:

Actual loan documents may be revised on a case-by-case basis and delivery of approved loan funds will be handled accordingly.

For more information about this program, please contact the City’s Economic Development Department at (916) 691-2489.

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