Working Solutions Microloan Program
Working Solutions finances microentrepreneurs within the nine San Francisco Bay Area counties. This program is for entrepreneurs who have limited or no access to a bank loan. We also require our borrowers to participate in a customized education program to help their business grow and thrive.
Microloans
- $5,000 to $25,000 for startup and existing businesses, or those with less than 2 years of full sales history
- $5,000 to $50,000 for businesses in existence at least 2 years, or those with more than 2 years of full sales history
Please note the size of the loan is subject to additional eligibility criteria.
Eligible Loan Uses
- Working capital
- Inventory purchase
- Equipment and machinery
- Leasehold improvements
- Startup costs
Ineligible Loan Uses
- Debt consolidation or refinance of business debt
- Personal use
- Owner’s draw or salary
Interest Rates
- Interest rates are fixed from 8% to 10%
Term of Loan
-
Loans terms are up to 5 years, fully amortized
Location of Business
We serve businesses located within these nine San Francisco Bay Area counties:
- Alameda
- Contra Costa
- Marin
- Napa
- San Francisco
- San Mateo
- Santa Clara
- Solano
- Sonoma
Loan Fees
- Application fee: $50 nonrefundable
- Loan closing fee: 5% of the loan amount
- Additional fees may apply in connection with securing collateral, returned checks, late payments and any prepayments made within three months of loan closing
- For an estimation of monthly payments, try the Loan Calculator.
- For an estimation of interest paid over the life of the loan, try the Amortization Table here.
Basic Eligibility Requirements: Start-up Businesses
Businesses with less than one year of full sales history.
- The business has received a written or verbal loan declination from a bank.
- The owner has at least 1 year of recent, paid, same-industry experience.
- Owners are current on their personal credit obligations when they apply.
- The owner has a secondary source of income to cover personal expenses while the business is starting up. This could be from a family member, second job, or other source.
- A completed business plan. SCORE provides one-on-one business plan training to entrepreneurs.
- Owner’s equity injection of at least 20% of the requested loan amount.
- We do not require a minimum credit score, however you must be current on all your payments today and have not had a bankruptcy in the last 2 years.
- You are a U.S. citizen or permanent resident, and you are 18 years or older.
- You are interested in receiving ongoing business coaching and mentoring.
- All owners of 20% or more are required to provide a personal guaranty on the loan.
Basic Eligibility Criteria: Existing Businesses
Businesses with one year or more of full sales history.
- The business has received a written or verbal loan declination from a bank.
- The business has one year or more of full sales history.
- Owners are current on their credit obligations when they apply.
- Executive summary of the management and operations of the business.
- Owner’s equity injection of 10% of the requested loan amount.
- We do not require a minimum credit score, however you must be current on all your payments today and have not had a bankruptcy in the last 2 years.
- You are a U.S. citizen or permanent resident, and you are 18 years or older.
- You are interested in receiving ongoing business coaching and mentoring.
- All owners of 20% or more are required to provide a personal guaranty on the loan.
If your business meets the above criteria, click on our Apply tab above and fill out the pre-application form. A Working Solutions staff member will contact you within 2 business days.
If you do not meet the above criteria, please review our Business Resources link to find the right resource for you. California’s State Trade Association, CAMEO, offers a directory of California small business lenders. Click here to read the full directory.
Loans made pursuant to a Department of Corporations California Finance Lenders License. This is not a guaranteed loan offer. All loan applications are subject to review and approval by TMC Development Working Solutions.
These are the steps involved in our microloan application process.
Step 1:
Determine if you are eligible for a loan by visiting our Are You Eligible? tab.
Step 2:
If you feel your business meets basic eligibility, fill out the pre-application form on the Apply tab. A Working Solutions staff member will contact you within 2 business days.
Step 3:
A Working Solutions staff member will schedule a 15-20 minute telephone interview with you to confirm eligibility and discuss the application process.
Step 4:
Upon confirmation of eligibility, fill out the Microloan Application form below.
- Application Packet for Sole Proprietorships
- Application Packet for Corporations, Partnerships, and LLCs
Submit the Application Forms, requested documentation, and $50 non-refundable application fee to Working Solutions by email, mail, or fax:
Timing: 1 Month
- From the time we receive a completed loan application with all of the requested information, it generally takes 7 to 15 business days to receive a decision as to whether your loan request was approved or not
- If your loan is approved, it takes an additional 1 to 3 weeks to fund your loan
Loans made pursuant to a Department of Corporations California Finance Lenders License. This is not a guaranteed loan offer. All loan applications are subject to review and approval by TMC Development Working Solutions.
City of San Francisco Revolving Loan Program (SF RLF)
- City of San Francisco Revolving Loan Fund loans are subject to the availability of funds.
- The business must be headquartered in San Francisco.
Loan Amounts
- $5,000 to $25,000 for startup and existing businesses, or those with less than 2 years of full sales history
- $5,000 to $50,000 for businesses in existence at least 2 years, or those with more than 2 years of full sales history
Interest Rate
- Interest rates are fixed from 4% to 6%
Term of Loan
- Loan terms are up tp to 5 years, fully amortized
Basic Eligibility Requirements: All Businesses
- Have limited or no access to a bank loan
- Business is located in San Francisco
- Create/retain 1 full-time job made available for low/moderate-income individuals
Basic Eligibility Requirements: Startup Businesses
- At least 1 year of recent, paid, same-industry experience
- Secondary source of income
- A completed written business plan
- Owner’s equity injection into the business: at least 20% of the requested loan amount
Basic Eligibility Requirements: Existing Businesses
- Executive summary of the operations and management of the business
- Owner’s equity injection into the business: at least 10% of the requested loan amount
Eligible Loan Uses
- Working capital
- Inventory purchase
- Equipment and machinery
- Startup costs
- Leasehold improvements
Ineligible Loan Uses
- Personal expenses
- Debt consolidation/refinance
- Payment of existing business debt
Timing: 1 Month
- From the time we receive a completed loan application, it takes 7 to 10 days to receive a decision as to whether a loan request is approved or not
- If a loan is approved, it takes an additional 1 to 3 weeks to fund the loan
Loan Fees
- Application Fee: $50 nonrefundable
- Loan Closing Fee: 5% of the loan amount
- Additional fees may apply in connection with securing collateral, returned checks, late payments and any prepayments made within three months of loan closing
Personal Guaranty
- We require a personal guaranty for anyone who owns 20% or more of the business.
Education and Business Coaching
- As a requirement of our loans, we create an education plan of free and low-cost workshops about entrepreneurial topics for our borrowers to complete after they receive a loan.
- We also provide ongoing free technical assistance during the life of the loan
Prior to Starting the Application Process
We recommend you review:
- Application Forms: Sole Props or Corps, LLCs, and Partnerships
- And speak to a Working Solutions representative (see phone numbers below) to determine program eligibility before completing any paperwork.
- We will need copies of your 2011, 2010, and 2009 federal tax return.
Our services are provided in English, Cantonese, and Spanish
- English Speakers: Please call 415-655-5473 to schedule a 15-20 minute eligibility phone call.
- Cantonese Speakers: Please call Agnes Cheung at 415-655-5471 to schedule a 15-20 minute eligibility phone call.
- Spanish Speakers: Please call Lorena Roman at 415-655-5448 to schedule a 15-20 minute eligibility phone call.
Loans made pursuant to a Department of Corporations California Finance Lenders License. This is not a guaranteed loan offer. All loan applications are subject to review and approval by TMC Development Working Solutions. This project funded by the City of San Francisco’s Office of Economic and Workforce Investment.