SANTA CRUZ - Big banks have been cautious about making small business loans locally but savvy small business owners have found a solution.
Opportunity Fund, based in San Jose, is California's largest nonprofit microlender, loaning $5 million last year to nearly 400 small businesses and is nearing its goal of raising $300,000 in 60 days to create 1,000 jobs.
Local clients include June Ralston, owner of June Bug's Gym in Santa Cruz, and Jovan Sanchez, owner of A-1 Carpet Cleaning in Watsonville.
"They are both great examples of small businesses growing during the recession, even creating jobs," said Caitlin McShane, spokeswoman for Opportunity Fund.
Ralston was the first in Santa Cruz to compete as a gymnast. She stayed with it until she was 17, then switched to horse vaulting, in which she competed internationally. She raised three children, now, 30, 27, and 24 and was teaching preschoolers at Santa Cruz Gymnastics, where she had trained, when she decided to go out on her own.
Two years ago, she teamed up with Tumbling Tutor at 3910 Portola Drive after Rocky's Gym moved out, taking down a wall to expand the space. She then bought out her partner and today, she is serving about 200 families and has three coaches working for her.
She is looking for a second location to make her classes more convenient for Westside families.
Jamie Oldham is among the happy customers. His daughter started at June Bug's when she was not quite 2 and three years later, she still looks forward to going every Friday.
"We've done everything from birthday parties to to the parents' night out, which they do twice a month," he said.
He appreciates how Ralston keeps parents informed with a monthly newsletter, has a Chrismas schedule ready by October and steps in on the floor if needed.
"She's not about the competition, she's about the fun, the nurturing, the learning," he said of her approach, recalling how the children marched, dressed as bugs, in the Aptos Fourth of July parade.
Despite her gymnastics credentials and experience, Ralston found financing hard to get. She turned to her brother to fund startup expenses such as equipment.
Wells Fargo referred her to the Opportunity Fund, which loaned her $2,000 to buy a trampoline net, as a safety measure, and a computer.
"I'll finish paying it off next month," she said.
Sanchez got a loan to buy a carpet-cleaning machine in September to set up his own business.
"My father found the lender," he said.
He had been working with his dad, who started A-1 Janitorial 25 years ago and has six employees.
Business was slow during the holidays, so Sanchez is offering a carpet-cleaning special, two rooms and a hallway for $69 and three rooms and a hallway for $99.
McShane, spokeswoman for Opportunity Fund, said each loan creates or retains an average of 2.4 jobs.
"The Aspen Institute measures and verifies this for us," she said.
The Opportunity Fund is among 180 organizations in a national network of community development financial institutions that support economy activity. One example: A $10,000 loan to Zonia Torres, who runs Shining Stars Family Child Care out of her home in San Francisco. She improved her kitchen and backyard to make the day care safer for children, resulting in three new employees and a waitlist of clients.
Loans ranging from $500 to $100,000 are available from the Opportunity Fund at fixed-rate interest of 8 percent to 12 percent. Applicants can call or apply online.
"The process to apply is pretty simple, and our loan officers are really friendly, I promise," McShane said.
AT A GLANCE
Small business owners in the greater Bay Area in operation for at least a year are eligible for a loan from the Opportunity Fund.
Loans can be used for equipment, commercial vehicles, inventory or permanent working capital, tenant improvements, or business acquisition.
Applicants must have enough income to cover all business and personal expenses, and afford a monthly loan payment, be current on all bills and no late payments in last 12 months, and no excessive credit card debt.
A good repayment history is required, with no unpaid collections, no bankruptcy in the last two years and no unpaid tax liens, judgments or child support.
To apply, call 866-299-8173 or apply online at www.opportunityfund.org/small-business-loans/apply-now.
To contribute to the 1,000 jobs campaign, go to http://1000jobs.opportunityfund.org/
Source: Opportunity Fund
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