The City of Tacoma is working with the Tacoma Community Redevelopment Authority to offer low-interest financing for small businesses looking to establish and grow.
The financing comes from the U.S. Department of Commerce and is made available to Tacoma’s small business owners through a small business revolving loan fund program.
“Tacoma takes pride in its small business community and we enjoy helping small businesses create and retain jobs,” said Community and Economic Development Director Ricardo Noguera. “Their success is our success. We are particularly interested in considering financing for small businesses that manufacture, assemble and distribute goods and services, as well as financing for restaurants and other retail businesses.”
Only small businesses located within Tacoma city limits are eligible. They may borrow up to $300,000 at a 3 percent interest rate. The financing can be used to acquire property; perform tenant or capital improvements; purchase furniture, fixtures and equipment; or as working capital or soft costs. Loans are repaid in monthly installments over a 7- to 25-year period, depending on the use of the loan proceeds.
Borrowers must commit to creating a minimum of one full-time, permanent job for every $100,000 borrowed. They must also be prepared to personally contribute at least 10 percent of the financing needed to establish or grow their business. Additionally, the financing from the City must be used to fill a gap between the funds the business is seeking and the financing provided to the business by a senior lender such as a bank or community development financial institution. Loans are fully underwritten through a credit analysis and, whenever possible, are fully collateralized, most often through liens on fixed assets.
Interested businesses are encouraged to apply prior to Sept. 1. For more information, call Jacinda Steltjes at the City of Tacoma at 253-591-5221.