SF Offers $3.5 Million in Zero-Interest Loans for Small Businesses

San Francisco just announced a $3.5 million expansion of the San Francisco Hardship and Emergency Loan Program (SF HELP). The program will provide zero interest loans of up to $50,000 to approximately 80 small businesses as San Francisco continues on the road to economic recovery. Since the beginning of the COVID‑19 pandemic, the City has identified nearly $21 million in grants and loans for more than 1,150 local small businesses and their employees.

With thin margins and few reserves, many small businesses are relying on credit in order to bridge the reduced revenues that they have seen over the past several months. SF HELP fills a gap for very small businesses that lack meaningful access to credit. By offering a tool designed to sustain disadvantaged small businesses and give them the capital required to re-start their operations, SF HELP aims to advance recommendations from the City’s Economic Recovery Task Force to provide local economic stimulus, promote safe reopening, and pursue economic justice.

The $3.5 million expansion of SF HELP will focus on private, for-profit low-income to moderate-income small businesses. The loans can be used to pay for payroll, rent, inventory, equipment, and other operating expenses businesses have as they gradually reopen. They are zero interest loans up to $50,000, with a repayment term of up to six years. There are no loan fees, personal guarantees, or collateral requirements for the borrower.

SF HELP supports entrepreneurs and business owners who are the backbone of San Francisco’s economy, many of whom are people of color with limited access to traditional credit and affordable financing. SF HELP offers the bridge financing businesses need to make it through the pandemic and provides the financial support they need to reopen and recover. The program was created in April 2020 and since then has funded 227 small businesses with $8.5 million in loans and programming. Of the 227 loans awarded, 74% are minority-owned small businesses and 52% are women-owned businesses; representing more than 20 different types of sectors such as bars, hair salons, dry cleaners, health services, restaurants, manufacturers, gyms, and child care, etc. in San Francisco. Altogether, these businesses were able to retain nearly 730 jobs. For more information on the impact of SF HELP and other financial relief for businesses, go to oewd.org/impact.

Small businesses interested in applying for SF HELP can visit link.oewd.org/zeroloan. The deadline to apply is November 25 at 11:59 p.m. MEDA will then hold a lottery to determine which businesses will be invited to submit a formal application; this lottery will include a preference for low- to moderate-income-owned businesses throughout the city.