Mayor Ed Lee announced Monday that San Francisco is making $12 million in affordable loans available to small businesses through the creation of the Emerging Business Loan Fund.
“The Emerging Business Loan Fund will allow entrepreneurs and small businesses to secure the capital they need to innovate, grow their business and succeed,” Lee said in a statement.
The fund will help businesses that can’t obtain traditional loans to pay for things such as equipment, permits, licenses, staff, office space and marketing. The loans will target community businesses in growing sectors such as manufacturing that create jobs for low-income populations.
Through the program, small businesses can borrow up to $1 million with fixed interest rates from 4 to 7.25 percent. Bay Area Small Business Finance, a local nonprofit lender, will administer the loans.
Prior to now, local entrepreneurs have been able to secure microloans capped at $50,000 through the Revolving Loan Fund.