City offers incentive for more jobs
South Lake Tahoe business owners can qualify for loans if they use the money to create extra jobs.
The city of South Lake Tahoe is looking to disperse $90,000 remaining from a $250,000 state grant that was awarded to the city two years ago for economic development.
Patrick Conway, the city’s housing and economic coordinator, said the loan money can be used for many types of business purposes as long as the employer creates one extra position for every $20,000 borrowed.
“It’s not a program to get people who have financial trouble out of debt, it’s for businesses who want to expand their services,” Conway said. “A good use of the money would be for purchasing equipment and working capital – updating computer systems, adding more inventory or new equipment.”
He said using the loan for construction is not appropriate because the government grant mandates that construction workers be paid the federal rate, which is not as cost effective as obtaining a loan from a private lender and hiring construction workers at the market rate.
The loan, which can range from $5,000 to $65,000, works as a supplement to financing from private lenders and is offered at a 1-percent loan fee rate. Most loans are paid back within 10 years and the money from the loan goes back to the city as funding for a housing rehabilitation program.
Conway said there is no restriction on the size of business for qualifying.
“We want to see the total cost of the project, cash flows as it relates to the payments, a credit report and a business plan,” he said.
Interested business owners should contact Cathy Kope, of the city’s Housing and Economic Development Department, at (530) 542-6047. The office is located inside the Lake Tahoe Airport.
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