SEDCorp Loan Programs Expand Capacity
The Sierra Economic Development Corporation (SEDCorp) has won additional funding for its Rural Revolving Loan Fund (RRLF) from the USDA. RRLF loans can be made up to $250,000 for equipment, inventory, supplies, furniture, vehicles and working capital. Because SEDCorp also administers the loan programs for several local jurisdictions, it may be possible to couple a SEDCorp loan with the local jurisdiction's loan program when more than $150,000 is needed. In addition to being an authorized USDA lender, SEDCorp is the only Small Business Administration (SBA) microlender for all of northeastern California from Sacramento to the Oregon border including the counties of Sacramento, Yolo, El Dorado, Placer, Nevada, Sierra, Plumas, Lassen and Modoc. The SBA microloan program has a lending maximum of $50,000. "We've focused a lot of attention on SEDCorp's ability to provide access to sufficient capital for new and existing businesses in the nine-county area we now serve" explained SEDCorp CEO Brent Smith, "and we are very proud of the USDA‚'s confidence in us as demonstrated by this increased funding allocation."
SEDCorp has provided over $4 million in loan funds to more than 95 businesses since 1999. The service provided by the SEDCorp loan programs is based on the reality that most banks have a policy against making loans to start-up businesses, and they prefer to make larger loans of $50,000 or more. SEDCorp's ability to make smaller loans to even startup businesses provides the access to capital needed by many entrepreneurs and existing small businesses. "The primary purpose of our two loan programs is to stimulate business growth that will create employment opportunities" said SEDCorp Loan Supervisor Colleen Crowden. The programs will also help diversify the region's economic base and stimulate additional private sector capital investment within the rural communities.
Founded in 1969, SEDCorp is one of California's oldest continually operating economic development organizations. It is a private non-profit corporation funded by a combination of public and private sources for the preservation and growth of jobs in the region it serves. Members of the SEDCorp Board of Directors include elected city and county officials, community organization representatives and private citizens. For further information, contact SEDCorp at 530-823-4703.