SANTA ROSA, Calif.–Redwood Credit Union said it has entered into a unique partnership with seven local lending institutions that have pledged to invest $250,000 to create the Sonoma County Loan Fund: a micro lending pool for startup and expanding entrepreneurs who typically do not qualify for traditional financing.
The partnership was announced at the Spring Economic Conference by the Sonoma County Economic Development Board. RCU is the only credit union participating.
“We’re excited to partner with other community institutions to support small businesses in Sonoma County,” said Brett Martinez, RCU’s president and CEO. “As a community lender, we believe funding the growth of microbusinesses is a positive way to impact local businesses, as well as the economic growth and vitality of our county.”
The Sonoma County Loan Fund will be administered by Working Solutions, an experienced nonprofit lender, in partnership with the Sonoma County Economic Development Board and investment pledges from Redwood Credit Union and six local community banks: Luther Burbank Savings, Exchange Bank, Summit State Bank, First Community Bank, Beneficial State Bank, and Presidio Bank.
Through the partnership, the Sonoma County Loan Fund will make loans from $5,000 to $50,000 with up to five-year repayment terms with and low, fixed interest rates from 8% to 10%. Technical assistance and mentoring is also integrated into the post loan process for participating businesses.