Business Assistance Loan Program

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The West Covina Business Assistance Loan Program is designed to assist local businesses and create jobs. West Covina through the Community and Economic Development (CED) division will make loans available to businesses creating permanent jobs. The jobs created must be permanent full-time equivalent (FTE) and made available to low-and-moderate income individuals.  While its a loan program, the loans may be forgiven if the applicant has maintained compliance with the program guidelines during the 5-year loan term.

City is accepting applications from February 20, 2018 to March 22, 2018

* UPDATED APPLICATION DEADLINE: THURSDAY, APRIL 5, 2018 @ 5:30 PM *

For more information about the program please read the information below:

*Documents, programs, and etc. are subject to change

Program Documents

Program Guidelines

The Business Assistance Loan Program provides West Covina business owners a loan of a minimum of $80,000 to a maximum of $360,000. The loan amount is based on $20,000 per FTE job created. In addition, those hired will need to be low-and-moderate income individuals.

 Basic Requirements

  • $20,000 per permanent FTE created made available to low-and-moderate income individuals
  • Maintain FTE funded by loan per term of the loan
  • 5-year term. After year 5, if in compliance, loan will be forgiven
  • Create a minimum of 10 jobs overall (of which 4 to 16 can count towards the FTE jobs for the loan program)
  • Business owner must provide matching funds
  • Demonstrate financial need
  • Run credit report through Experian (fee associated)
  • Provide collateral
  • Business must have office/storefront and the point of sale must be in the City of West Covina

Loan Application Processing

Applications will be accepted from February 20, 2018 until March 22, 2018.

UPDATED APPLICATION DEADLINE: THURSDAY, APRIL 5, 2018 @ 5:30 PM *

This is an open enrollment, not based on a first-come, first-serve basis. Complete applications will be reviewed by the City’s Loan Committee and recommendations will be presented to the City Council for approval on May 1, 2018*. Applications are being accepted through the Community and Economic Development Division, and will then be reviewed and scored by the City’s Loan Committee based on the criteria listed below. The Loan Committee will recommend the pre-approved applications to City Council for approval/denial.

 *Date is tentative and subject to change.

Applications

Applications can be found on the City’s website (www.westcovina.org). Please contact Karen Ko, with the Community and Economic Development Division, at (626) 939-8417 or karen.ko@westcovina.org to submit the West Covina Business Assistance Loan Program application.

Program Steps:

Step 1: Fill out application package and submit to City of West Covina’s Community and Economic Development Division (CED)

Step 2: Work with CED staff to complete application package

Step 3: Loan Committee reviews completed applications and scores based on criteria

Step 4: Presentation on recommended applications to City Council

Step 5: Execute loan documents and fund loan

Step 6: Monitor program for compliance during the 5-year term of loan

Dates:

  • February 20, 2018: Open Enrollment Starts
  • March 22, 2018: Complete Application Package Deadline at 5:30 p.m.
  • April 16-19, 2018: Loan Committee Review
  • May 1, 2018: City Council Approval/Denial
  • May 2018: Execution of loan documents and funding of loan

*Dates are tentative and subject to change. Depending on funding and applications, the City may re-open enrollment.

Criteria:

 Scoring of the applications will be based on the following criteria:

  • Financial Soundness (20%)
  • Job Creation (20%)
  • Business Plan (15%)
  • Potential Economic Impact (15%)
  • Owner/Operator Experience (10%)
  • Owner/3rdParty Funding (10%)
  • Quality of Life Impact (10%)

Applications that score 80% or higher will be presented to the City Council. In addition, applications are subject to program funding availability.

Reporting Requirements

Applicants who receive a program loan will be required to provide a quarterly report to the City which monitors the number of jobs created for the program and the qualifying employees. The quarterly report to the City will be recorded each quarter for the 5-year loan term. 

Income Guidelines

Jobs created must go towards to low-and-moderate income individuals. Maximum income limits are below.  

Family Size

Annual Income

1

$54,450

2

$62,200

3

$70,000

4

$77,750

5

$83,950

6

$90,200

7

$96,400

8

$102,650

(Based on current effective median income of Los Angeles County. Revised annually as set forth in 25 Cal. Code Regs. Section 6932) As of June 9, 2017.

Definition of FTE

Full Time Equivalent (FTE) Employee- For the purposes of this program, Full-Time Equivalent (FTE) is defined as forty (40) hours of paid full-time work in a seven-day period.

In the medical and dental fields, the industry practice defines full-time positions as 32 to 36 hours of work in a seven-day period. Therefore, the only exception to the forty-hour definition of FTE position requirement will be for positions created in the medical and dental fields, when the written personnel policy of the participating business states clearly the number of hours that constitutes full-time positions as 32 hours or more.


Source of Funds

 

 

The City of West Covina Business Assistance Loan Program is funded by the United States Department of Housing and Urban Development (HUD), by authorization of the Housing and Community Development Act of 1974, Title I, as amended, Public Law 93-383. The objective of the act is to develop viable urban communities, by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for person of low and moderate income.

As such, federal funds cannot go towards businesses that are not federally compliant (for example, a medical marijuana dispensary).

For more information about the CDBG Economic Development Guidelines, please visit the HUD Exchange website.

If you have any questions concerning the program please contact Karen Ko at (626) 939-8417 or email her at karen.ko@westcovina.org.

BA Loan Program Awardee:

On April 18, 2017, Gaucho Grill Argentinean Restaurant was awarded a Business Assistance Loan. They were awarded $239,999 for the creation of 12 FTE jobs. They are anticipating on opening in Summer of 2018.

Additional Business Resources

For further additional business resources, please visit Resource Guide for Business.

 

 

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