PLEASE NOTE: As of July 1st, 2010 we will no longer be accepting applications for the City's Business Development Loan Program. Due to a recent loss of funds to the State, the Redevelopment Agency no longer has the necessary funds to continue the program. Pleae check back on the City's website for updates regarding the program.
For questions/additional information, please contact the Affordable Housing Office at (510) 245-6517.
The City of Hercules and the Redevelopment Agency established the Business Development Loan Program (BDLP) to provide low-cost financial assistance to businesses within the City of Hercules. The business community is at the core of what makes for a strong, fully functional, and sustainable community. The BDLP exists to support the growth, development, retention, and attraction of community-centered commerce.
The BDLP offers a secured loan of up to $75,000, of a term not greater than twenty-years and a simple interest rate of 3% per annum. All applicants are evaluated and prioritized according to established program criteria and if funded are subject to various terms and conditions and fees (i.e. credit report, collateral title report, mini-escrow, signing and wire transfer services). These fees will be deducted from the final loan award by the escrow administrator at the time of funding.
Ideally, loans are intended for:
- Façade improvements (e.g., stucco, paint, doors, windows, signage, canopies, and other tangible improvements)
- Equipment purchases
- Debt restructuring
- Leasehold improvements (including but not limited to meeting Americans with Disabilities Act requirements)
Working capital, start up, or home-based businesses are not generally considered for funding.
The BDLP may be funded through a variety of sources, such as:
- City of Hercules Redevelopment Agency;
- Community Development Block Grant (CDBG) Section 108 Loan Program;
- Small Business Administration Grants; and
- City of Hercules Redevelopment Agency Tax Increment Funds.
All loans are subject to the availability of funds by the City and Redevelopment Agency. Applicants are served on a first-come, first-served basis and then prioritized by staff recommendation to the Loan Committee.
How do I get started?
Call (510-245-6517) or visit the BDLP representative to set-up an appointment. We are located at the Civic Center Complex at 111 Civic Drive, adjacent to the Police Department Annex in the Affordable Housing Office.
You may expedite the loan process by downloading and completing the BLDP Application (PDF) prior to your appointment.
The appointment will consist of an overview of the BDLP. If it is determined that your request and business entity meet program guidelines, you will be provided with the complete loan packet to start the process.
All completed applications are forwarded to the Loan Committee for approval. Again, all loans are subject to the availability of funds.
Download the Business Loan Development Application (PDF)
Please note that there is a $57.00 Application Processing Fee.
Should you have any questions, please contact us.