New small business loan program hopes to help California rebuild

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New small business loan program hopes to help California rebuild Many California businesses are wondering how they will stay afloat with a worsening COVID situation, including restrictions. On Friday, state officials announced a new small business loan program that hopes to help rebuild.BERKELEY, Calif. – California is launching a new loan program aimed at helping the nearly four million small businesses in the state that need access to funds, as federal relief money runs out and a new stimulus bill remains stalled in Washington. The California Rebuilding Fund began accepting applications at noon Friday for loans of up to $100,000 with a 4.25% interest rate over five years. To qualify, small businesses must have 50 or fewer full-time equivalent employees (FTEs) and 2019 revenues of less than $2.5 million. The program is a public-private partnership involving governments, commercial banks, and twelve Community Development Financial Institutions (CDFIs) which are obligated to reach out to under-resourced communities and help businesses that might be too small or risky to qualify for normal big bank loans.California Rebuilding Fund The idea was developed by a team of UC Berkeley professors Laura Tyson and Adair Morse.”We were trying to figiure out how to help the local governments and …

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