California small businesses are drivers of economic growth – creating two-thirds of new jobs and employing nearly half of all private sector employees. California is home to 4.1 million small businesses, representing 99.8 percent of all businesses in the state and employing 7.2 million workers in California, or 48.5 percent of the state’s total workforce.
We’re excited to be a founding member of the California Rebuilding Fund — a new program built to support California’s smallest businesses as you adapt, reopen safely, and recover from the effects of COVID-19. This program has been built in partnership with public, private, and nonprofit leaders across the state to ensure that California’s smallest businesses are able to access the resources and capital they need to get through these challenging economic times.
Loans are available up to $100,000 to small business owners in California with a fixed annual interest rate will be 4.25%. Businesses must have 50 or fewer employees and revenues of less than $2.5 million per year. The loans are flexible, transparent and are designed to help businesses access the capital and advisory services they need to get through these challenging economic times.
This program is being anchored by a commitment from our friends at California’s Infrastructure and Economic Development Bank (IBank) and agencies across the State government. “Businesses across California have been devastated by COVID-19 and our smallest businesses have been the hardest hit,” said Governor Newsom. “Ensuring that these businesses have access to capital will help jumpstart economic growth in communities across the state and provide needed support for entrepreneurs working hard to keep their doors open.”
It’s been a tremendous honor and opportunity to contribute to this group of impact investors, CDFIs, and diverse Chambers of Commerce that have come together across the state to reach the entrepreneurs being excluded by the SBA and traditional banks, and improve their chances of survival with this much needed affordable capital.