Truckee Launches CDBG-CV Forgivable Loan Program

Sierra Business Council on behalf of the Town of Truckee is introducing a program that provides affordable, flexible, and potentially forgivable financing to eligible small businesses in Truckee. Funded by Community Development Block Grant- Coronavirus funds, these programs are designed to stimulate economic growth and provide support in the recovery from COVID-19 through job retention.

The program offers two types of loans of up to $30,000 for COVID-impacted eligible businesses within Truckee town limits. Both loans offer forgiveness if all program requirements are met and the funds are spent within three months of disbursement.

An FAQ Webinar will be held on Monday, November 8th at 10AM with Sierra SBDC advisors. Please register in advance to receive the Zoom link: https://www.sierrasbdc.com/event/truckee-forgivable-loans/

To apply, please contact info@sierrasbdc.com or call 530-582-5022 to receive application documents and see if you qualify. You can also review the full guidelines here: https://www.townoftruckee.com/government/town-manager/economic-development/cdbg-cv-forgivable-loan-program

Eligibility Requirements Include:

  • Business has been impacted by COVID-19
  • Financial assistance results in jobs retained
  • No duplication of financial assistance for same costs during the same time period
  • Business has been in legal operation in Truckee since January 21st, 2019
  • Business maintains a physical business address within Truckee town limits
  • Business address cannot by primary residence
  • For Business Assistance Loans: 51% of the jobs retained must be filled with persons whose household income is at or below 80% AMI , job must be a W2 position
  • For Microenterprise Loans: Business has 5 or fewer employees, and owner(s) of the business make 80% or less of AMI

State CDBG Maximum Income Limits – County of Nevada Effective 4/1/2021 

Household Size  128
80% AMI $50,300$57,500 $64,700 $71,850 $77,600 $83,350 $89,100 $94,850 

Eligible Use of Funds Includes:

  • Operating Capital for staff salaries, leasing space, business rent, utilities
  • Purchasing inventory, supplies, computer programs for accounting or inventory control, or FFE
  • Rehab of business owned or leases space (tenant improvements)
  • Equipment purchase
  • Refinancing of business debt in conjunction with financing other eligible costs, except credit cards

Loan Terms Include:

  • Up to $30,000 loans
  • Forgivable if borrower meets requirements within period of 3 months:
    • Retaining required number of low/moderate income jobs (1)
    • Payment of all other loan eligible expenses
    • Providing all required documentation
  • Term commences at end of forgiveness period if not forgiven
    • 1-3 year term at 3%
    • No prepayment or loan fees
    • Collateralized to the greatest extent possible
    • Strongest possible security position