Business Loans Now Available for WC Businesses!
WEST COVINA – The City of West Covina is pleased to announce its new economic development program available to local businesses. The West Covina Business Assistance Loan Program is designed to assist local businesses and create jobs. The program is taking applications through an open enrollment process (not based on a first-come, first-serve basis), which began February 9, 2017 and ends on March 30, 2017.
The City Council created the West Covina Business Assistance Loan Program (WCBA) to continue to spur economic investment in West Covina and to assist local businesses expand their operations. The City of West Covina is investing $200,000 in Community Development Block Grant (CDBG) funds to implement this program. The WCBA is available to West Covina businesses that are able to meet the program’s guidelines and create local jobs.
Through the use of CDBG funds, the City of West Covina is able to assist local businesses by providing forgivable loans to businesses that create jobs. The West Covina Business Assistance Loan Program is available to West Covina businesses that qualify based on specific program guidelines. The program guidelines include the following:
- loans of $20,000 per permanent full time equivalent (FTE) job created;
- a 5 year loan term;
- the business must create at least 10 jobs;
- jobs created must be made available to low-to-moderate income individuals (during term of loan); and
- business must provide matching funds.
If the business is in compliance for the full duration of the 5 year loan term the loan will be forgiven! Businesses that participate will be required to participate in a quarterly monitoring program, ensuring they meet the CDBG requirements and job creation, during the term of the loan.
The City of West Covina has partnered up with the University of La Verne Small Business Development Center (SBDC), an organization that provides business owners and entrepreneurs a vast array of assistance. SBDC will assist in reviewing of the applications and underwriting the loans. SBDC’s services are free. WCBA applicants do need to sign up as SBDC clients as part of the City’s process. SBDC will be working with the business owner to complete the loan application package for the submittal to the City. SBDC will provide complete application packages for the Loan Committee to review and score.
“The City of West Covina, recognized as a business friendly city, is excited to offer an additional tool for our local business community. The Business Assistance Loan Program will help our local businesses grow and generate new jobs for our community at the same time,” stated West Covina Mayor Corey Warshaw.
For more information about the West Covina Business Assistance Loan Program, please visit www.westcovina.org/business.