The Grow Sacramento Fund (GSF) was created in 1996 to be a lender with a difference. While its mission is to provide market rate financing for expanding businesses located in the City and County of Sacramento, the Fund is a non-profit lender that offers more technical assistance and flexible underwriting criteria than a traditional financial institution.
The Fund works hard to tailor each loan to the individual borrower. It is funded jointly by the Sacramento Housing and Redevelopment Agency (SHRA) and the Sacramento Municipal Utility District (SMUD).
GSF also serves to provide access to long-term financing for any qualifying business that will create or retain jobs and to assist energy-related business.
The Grow Sacramento Fund can provide loans of between $25,000 and $2,000,000. Loan proceeds may be used for a variety of business purposes, including the acquisition, construction or rehabilitation of a building, leasehold improvements, machinery and equipment, and long-term working capital. GSF cannot offer lines of credit, provide equity or venture capital, or fund Research and Development.
The Grow Sacramento Fund's loans are made under the U.S. Small Business Administration's (SBA) 7(a) program. SBA provides a guarantee of between 75 - 85% of the amount borrowed.
GSF can finance real estate for up to 25 years, machinery and equipment for up to 10 years, and working capital for up to seven years.
The Grow Sacramento Fund's interest rates are competitive. Most loans are made at interest rates between Prime and Prime + 1.5%. GSF can handle both fixed- and variable-rate financing.
The Grow Sacramento Fund's longer loan terms can help businesses stretch their cash flow, saving thousands of dollars through lower monthly payments.