City’s Metro Loan Expansion Offers New Funding Sources for Small Businesses
Ego Id First Business To Secure Funding In Larger Eligibility Area

SAN DIEGO –The City of San Diego is taking another proactive step to foster and grow its vital small business community which represents more than 70,000 businesses and approximately 92 percent of all businesses in the City.  The City received approval to expand its Metro Revolving Loan Fund, allowing more small business owners located in low- and moderate-income areas the ability to access much needed capital to grow their companies and create more jobs locally.  With the approved expansion, the Fund has already closed its first loan of $150,000 with Ego Id, Inc., a newly eligible business.

The Metro Revolving Loan Fund, managed by the City’s Community & Economic Development Department (CED), offers financial assistance to start-up and expanding businesses, and is designed to supplement private financing of new or rehabilitated buildings, fixed machinery and equipment, working capital and soft costs.

The City received approval from the U.S. Department of Commerce, the funds grantee, to expand the Fund from its original 23 census tracts to 159 census tracts located throughout the City of San Diego.  The loan size was also increased from a maximum of $50,000 to loans from $25,000 to $150,000.  The leverage requirement for the amount of other capital that the business is required to raise was reduced from 2:1 to 1:1.  The Fund was recently transferred from the Southeastern Economic Development Corporation to CED to compliment two other loan funds: the long standing San Diego Technology Fund and the new San Diego Regional Revolving Loan Fund.

“The expansion of the Metro Revolving Loan Fund represents an excellent opportunity for businesses to access much-needed, yet hard to secure capital that can improve and expand their companies,” said Hank Cunningham, director of the City’s Community and Economic Development Department.  “We expect and encourage businesses within the expanded area to utilize City loan programs to secure funding in the event they are having difficulties meeting the terms of traditional banks.”

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“In an economic climate that is making it more challenging to secure loans from traditional banking institutions, it is gratifying to know that the City of San Diego will go the extra mile to help small businesses secure the funding they need to grow and remain prosperous,” said Jim Yuran, CEO of Ego Id, Inc.  “With this funding we will be able to meet the growing demand for our products and add more staff.”

The City’s Community and Economic Development Department has developed three separate revolving loan funds to address the full spectrum of funding needs for small businesses:

• The $1 million San Diego Technology Fund provides capital to technology companies that have the capacity to generate follow-on investments, creating the potential for large companies that promote regional prosperity.  
• The $3 million San Diego Regional Revolving Loan Fund provides capital to the mid-level non-technology companies that have a strong likelihood of generating jobs.  This fund was created in partnership with Chula Vista, National City and Imperial Beach to benefit the regional economy. 
• The $500,000 Metro Revolving Loan Fund provides funding to underserved small business owners located in a low- and moderate-income census tract that needs start-up capital, but can’t meet the terms of traditional banks.

For more information on Ego Id, Inc. visit their web site at www.ego-id.com or contact the company at (888) 993-4643.

For more information on the Metro Revolving Loan Fund and other City of San Diego business assistance programs, visit the City’s web site at www.sandiego.gov/ced or call the Community and Economic Development Department at (619) 533-4233.

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With an emphasis on the City’s urban core neighborhoods and low and moderate income residents, the Community and Economic Development Department strives to improve the quality of life and ensure a healthy economy in San Diego through job development, business development, neighborhood revitalization, public improvements, redevelopment, social services, and revenue enhancement.