Nomad Donuts, above, used the San Diego Region Revolving Loan Fund to expand its business in North Park.

San Diego Region Revolving Loan Fund

The City of San Diego manages the San Diego Regional Revolving Loan Fund (SDRRLF). This is a loan program for businesses located in the City of San Diego. The SDRRLF has supported the city’s ecosystem of thriving small businesses with medium and small loans across many sectors, including innovation, tech, manufacturing, healthcare, and fitness.

For nearly three decades, the City of San Diego has provided local entrepreneurs affordable capital to meet expansion, retention and growth needs. Through the COVID-19 pandemic, the SDRRLF supported over a hundred small and medium-sized businesses and provided much needed funding to get them through uncertain times.

As the SDRRLF looks toward its next phase, the City aims to prioritize lending in sectors and businesses that align with the City’s Economic Development Strategy, most recently adopted in 2023. The Economic Development Strategy is a plan that lays the foundation for sustained economic success and fiscal stability for San Diego, helping position the region as a global leader. Click here to read the Economic Development Strategy and to learn more about target sectors. 

Initial Interest

As funding becomes available for lending, the City will reach out to businesses that submit an interest form and meet minimum eligibility requirements. This page and the Interest Form may be updated as needed to reflect additional information on the SDDRLF.

Eligibility Requirements

• The business has a commercial location in the City of San Diego, with loan funds to be spent at that location
• Businesses must have an active City of San Diego Business Tax Certificate
• The loan must be used to create or retain employment opportunities in the City of San Diego
• Startups interested in applying for a loan must have at least a six-month operating history in a supportive business environment (e.g., incubator, accelerator, business development program, etc.) 
• The business meets the following qualifications:
  • Employs 1 to 250 Full-Time Equivalent (FTE) employees at time of application
  • Has at least one (1) FTE on payroll NOT including the business owner(s)
  • Has a commercial location in the City of San Diego, with loan funds to be spent at that location
  • Has an active City of San Diego Business Tax Certificate Business License
  • Is not part of a franchise or chain
  • Is not a lobbying, lending, investment, or insurance company; a golf course, racetrack, or gambling facility; or a business engaged in the sale of firearms or performances or sales of products of a prurient sexual nature
  • Is not engaged in any illegal activity per local, state or federal regulations
  • Is in good Standing with SOS, if filing is required for the business legal structure
  • Has an active Fictitious Business Name, if required by the County of San Diego
  • Is able to start repaying the loan six (6) months after the issuance of the loan
  • Shows positive 2023 net income
  • Has monthly business debt service/business revenues ratio less than 30%, with “revenues” referring to 2023 average monthly sales
  • Has no more than one 60-plus-day delinquency and no charge-offs in 2024
  • Has no delinquencies of any kind in 2024
  • Is not currently a party to any claim or lawsuit
  • Is not delinquent on any federal, state or local taxes
  • Is not liable under any contingency agreements
  • Is not involved in any outstanding judgments
  • Is not involved with having a property foreclosed upon or given title in lieu of foreclosure
  • Is not debarred from receiving federal assistance
  • Has not filed for bankruptcy protection in the past three (3) years
  • Has no repossessions or foreclosures within past three (3) years 
  • Has no outstanding tax liens and judgments 
• Each owner with at least a 20% ownership stake in the business meets the following qualifications:
  • Resides in California
  • Willing to provide personal guarantee
  • No repossessions or foreclosures within past three (3) years 
  • No outstanding tax liens and judgments
  • No unpaid child support
  • Has not filed for protection under bankruptcy laws within the past three (3) years
  • Is not currently a party to any claim or lawsuit
  • Is not delinquent on any federal, state or local taxes
  • Is not liable under any contingency agreements
  • Is not involved in outstanding judgments
  • Is not involved with having a property foreclosed upon or given title in lieu of foreclosure
  • Is not debarred from receiving federal assistance
  • Is not delinquent on child support
  • Is not currently on parole or probation or been convicted of a criminal offense (other than a minor vehicle violation) within the past five (5) years
  • Is not currently under indictment or charged with a criminal offense (other than a minor vehicle violation)

Documents Required for Application, Review and Loan Closing

The following documents will be required during the application and loan closing periods

• Business Documents:
  • Complete list of all owners, including percentage of ownership
  • Last three years’ of Federal IRS business tax returns
  • Current calendar year Balance Sheet and Profit & Loss Statement
  • Next year’s projected Balance Sheet and Profit & Loss Statement
  • Last three months’ business bank statements
  • ACORD Certificate of Commercial General Liability Insurance
  • Articles of Incorporation, Corporate Bylaws, and Corporate Resolution to Borrow, if applicable
  • Partnership agreements, partnership bylaws, buyout agreements and authorization to borrow, if applicable
  • W9
• Documents for each 20%+ owner:
  • Valid Driver's License or Alien Identification Card and proof of residential address
  • Credit Report
  • Last two years’ Federal IRS personal tax returns and corresponding IRS Form W2(s)
  • Last three months personal bank statements

Loan Details

• Amounts between $25,000 - $95,000
• Interest Rate - 3% Annually
• Period - up to 6.5 years, and shorter term  depending on loan size
• Loan Fees - $250 Application Fee. Loan origination fee of $100 plus 1.0% per loan that to be included in the financed amount.
• Repayment - No payments and no interest accrued for first six (6) months

Application Process

The City will be reviewing applications and prioritizing submitted interest forms until December 2024. During this time, interest forms will be reviewed for eligibility and prioritization for an application. Applying for the SDRRLF starts with an online interest form, available here. 

The following steps occur generally over 90 days:

1. Initial review for eligibility
2. Presentation to Advisory-Board representatives
3. Completion of financial due diligence
4. Completion of full credit memorandum
5. Applicant receives commitment letter
6. City provides loan documents
7. City receives signed loan documents from applicant and City Attorney’s Office
8. Set up of internal Department of Finance accounts
9. Funding of initial disbursement