Newsletter
June, 2010
Cushman
 

STEM SQUARED
 
 
 
The Chamber of Commerce mission is to promote a vibrant local economy. As part of it's economic development strategy, the Chamber is creating a micro loan program to assist in the incubation of small start-up businesses.
 
The Chamber has established a scholarship program for students at Santa Barbara City College (Chance for Change). The Santa Barbara Scholarship Foundation administers the scholarship program. Currently ten students attend City College on Chamber scholarships. The scholarships are targeted for students who have left youth gangs or are at risk of joining youth gangs.
 
As a link to the City College scholarship program, the Chamber will utilize referral resources from City College Scheinfeld Center for Entrepreneurship and Innovation to identify young student entrepreneurs who may wish to apply for a Chamber Micro Loan for their business. The Chamber will create a loan committee to approve applicant loans and assign optional mentors.
 
The Chamber short-term objective is to fund a test program of 5 new micro loans in 2010. The long-term objective is to raise a fund of at least $100,000.00 to support this business development effort.
 
The Loans
 
The loans are small, short-term, personal, promissory notes to individuals for the purchase of equipment, business formation fees, and licensing or web development. Funds may not be used to pay existing debts or purchase real estate. The maximum term for a loan is 5 years. The maximum amount is $2,500.00. Interest rate will be 3.25%. Loans will be re-paid monthly. There are no fees. There are no prepayment penalties. Those applying for loans may be required to fulfill training or planning requirements. Borrowers will be required to provide a personal guarantee. Borrowers will be required to submit a quarterly status report on their business.

The Chamber of Commerce will administer the loan program.

Donors
 
The individual loans will be named in honor of their donors. The one-time endowment donation amount is $2,500.00. The donor recognition will continue for the lifetime of the program. Recognition will be given to the donors on all correspondence, on the Chamber website and in all publicity and promotion. For instance, The Hub International Young Entrepreneur Start-Up Loan, or The Decker's Outdoor Young Entrepreneur Start-Up Loan, would be a suggested loan name for donor recognition.
 
Donors will be invited to participate in the applicant review presentations. Contact Steve Cushman if you are interested in sponsoring this project.
 
Mentorships
 
By connecting people we can create relationships beyond financial transactions, and build a community expressing support and encouragement of one another.
Donors to the micro loan program may wish to serve as mentors to the young borrowers. Borrowers will be given the opportunity to participate in a mentor program. The Chamber will make every effort to match business mentors with the micro loan borrowers to assist in the success of the new businesses.
 
Support
 
Borrowers will be given a free three-year membership in the Chamber of Commerce. The Chamber will make every effort to recognize and support the micro loan participants.