Written by The Business Journal Staff
The California Infrastructure and Economic Development Bank, known as IBank, has unveiled a new microloan program that will provide entrepreneurs with financing from $500 to $10,000.
The Jump Start Loan Program is geared toward small businesses, with goals of assisting underserved groups including women, people of color, veterans, the disabled and the previously incarcerated, according to a news release.
“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,” said IBank Executive Director Teveia Barnes, in a statement. “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.”
The loans will be administered by Financial Development Corporations across the state, including the Valley Small Business Development Corp. in Fresno, which has a service area that includes Fresno, Kings, Madera and Tulare counties.
Eligible applicants must be located in a low-wealth community, defined as a county with a per capita income equal to or less than 115-percent of the statewide average, or a city or unincorporated area with an unemployment rate equal to or greater than the statewide average.
The borrower’s annual income must also be equal to or less than the statewide average.
Each Jump Start loan is expected to create or retain one to four jobs and have a positive impact on the state’s economy, according to the news release.