Historic Loan Program Expands Access to Capital for Rural Small Businesses
SCF Arizona and Chicanos Por La Causa are teaming up to create the SCF Arizona Community Jobs Investment Program, aimed at growing jobs in under-served, rural areas of Arizona by establishing a $10 million loan fund available to small businesses that seek to start or expand their business. Program officials estimate most of the loans, lent at current market rates, will be made in the $150,000 to $300,000 range and will be used by small businesses outside Maricopa County and Metro Tucson to expand, acquire business property, buy equipment or update their existing businesses. The program is expected to help small businesses create over 300 jobs.
Tight lending requirements of today’s economy often challenge small businesses, cutting off access to capital. Préstamos CDFI, LLC, a subsidiary of CPLC that provides small business access to capital, will process the applications and will underwrite and service loans made under the program. Applications will be available online. Corporations, nonprofits and especially small business owners who are veterans, are encouraged to apply. Employers who are veterans will enjoy a 1% interest rate reduction.
Details about the Community Jobs Investment Program will be released at the ribbon-cutting ceremony and open house of Préstamos’ new office.
When: 4 p.m., Friday, December 7 Where: 1024 E. Buckeye Road, Ste. 270, Phoenix
“Through Préstamos, CPLC promotes economic empowerment that builds business and employment opportunities, which leads to self-sufficiency and wealth building,” said Edmundo Hidalgo, CPLC President and CEO. “We are able to accomplish this mission through partners such as SCF Arizona that recognize the value of investing in the growth of the small business community to allow them to transform communities.”
SCF Arizona, the state’s largest provider of workers’ compensation insurance, has been recognized by business leaders as an economic engine for the state. By providing funding for community-based lending programs like the Community Jobs Investment Program, SCF works to make capital accessible to Arizona small businesses.
“Our aim is to increase jobs in Arizona, specifically in non-urban areas where unemployment is the highest,” said Rick DeGraw, SCF executive vice president and chief administrative officer.
SCF has been a leader in developing opportunities such as the Community Jobs Investment Program, the third in a series of opportunities for Arizona businesses to gain access to capital they may need to operate.