Daly City Micro Loan Program

Program Description
The City of Daly City and First National Bank of Daly City have created a public-private partnership to provide micro loans to small businesses in Daly City. Micro loans are small loans which are extended to small businesses that have the potential to grow or create jobs. Few commercial lenders offer micro loans to their small business customers because the cost to process these loans is too high in relation to the small amount of interest that is generated from the loan payments. 

Eligibility
Those small business owners with a Daly City location who are eligible for the program include: 

• minority or women owners 
• low or moderate income owners 
• owners that will create new jobs for low or moderate income persons 
• owners whose businesses are located in the Redevelopment Area or the Bayshore commercial district (designated target areas)
• The City's and First National Bank's program provides the needed technical assistance, loan packaging and easier, but sound, qualifying criteria to allow small businesses access to micro loans. The program specifically is designed for small businesses located in Daly City. 

Step 1

Contact the staff of the Enterprise Development Center to obtain complete information about the program and to arrange an appointment to prequalify for a micro loan.

Step 2

Submit your business plan for review. A business plan is an important part of a micro loan application and will enable the Center staff to more thoroughly prequalify you for the program. If you have not already prepared a business plan, the Center staff can assist you in preparing a business plan.

Step 3

Center staff will comment on your business plan and you may want to make some revisions to it. 

Step 4

Once you submit an acceptable business plan and prequalify for a micro loan, the Center staff will assist you in preparing the loan application package.

Step 5

Center staff will prepare the loan write-up, the Daly City Micro Loan Committee will consider your request and you will receive a letter regarding the result. 

The Daly City Micro Loan Committee is responsible for considering loan applications. The Committee consists of five volunteer members from First National Bank, the City of Daly City and the small business community. 

Loan Terms
The following are general loan terms which apply to the program: 

Loan Amounts:

Minimum $ 5,000

Maximum $25,000

Term:

Up to 5 Years

Repayment:

Fully amortizing

Fixed Rates:

Existing businesses: 1% over Bank's Reference Rate

Start-ups: 2% over Bank's Reference Rate
First National Bank's Reference Rate is the Wall Street Journal Prime Rate.

Fees:

$20 Application Fee Per Business Owner (paid to City at time of application)

$100 Documentation Fee (paid to Bank at loan closing)

Servicing:

First National Bank funds and services loans 

Additional Requirement:

At least once quarterly during loan term, borrower must obtain free needs assessment from the Enterprise Development Center

For more information or to prequalify and apply for a micro loan, please contact the staff of the Enterprise Development Center at (650) 991-5103.