Small Business Down Payment Grant Program

Own your business property or expand to a new location. 

 

Thanks to this special program, your business can soon begin to play an even more important role in supporting your community.

If your business is a minority-owned business enterprise (MBE) or a woman-owned business enterprise (WBE), we invite you to participate in our new Down Payment Program that provides a grant up to 50% of the required down payment* on SBA 7(a) and SBA 504 loans for owner-occupied commercial real estate in Opportunity Zones within your city. The grant itself, which is not to exceed $25,000,* does not have to be repaid.

By purchasing your business property, you can start building equity— equity you can use in the future to fund more growth, more jobs and more opportunity. IMPORTANT TAX INFORMATION: Our grant can be considered taxable income by both state and federal authorities, which means, you may owe more in taxes. If you choose to accept this grant, we’re required to report the funds we gave to you to the Internal Revenue Service (IRS) on Form 1099-MISC. We’ll also send you a copy of this form for your tax records. We will need a copy of your W-9 to determine your tax implication. Before accepting this grant, we’d recommend you talk with a tax advisor.

Benefits of this special program:

  • Exclusively for minority-owned and women-owned businesses
  • Keep more cash on hand to run your business
  • Grant does not have to be repaid
  • We’re a leading SBA preferred lender

Answers to questions about this program

Q: Who qualifies for the Down Payment Program?

A: Sole proprietorships and business entities whose sole owner or principal owner(s) self-identifies as a woman, Black or African American, Hispanic or Latino, American Indian or Alaska Native, Asian, Native Hawaiian or other Pacific Islander—with 51% ownership and control of the business.

Q: Does the money have to be repaid?

A: The grant portion of your down payment—up to $25,000—does not have to be repaid.

Q: Can I take advantage of the program if I plan to move to a different location?

A: Yes. This program applies to SBA loans for the purchase of owner-occupied commercial real estate in Opportunity Zones within the city.

Q: What is an Opportunity Zone?

A: Opportunity Zones were created to spur private investment in areas across the United States that have not seen the same level of economic recovery as other communities.

Q: If I don’t qualify for the program, can I still apply for an SBA loan?

A: Yes. You may still apply for SBA loan products, which require a down payment as low as 10% and may feature longer repayment terms. SBA loans are available to both new and established businesses.

To learn more about this opportunity, please speak with a Small Business Specialist today, by clicking here.

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