California Community Economic Revitalization Team

Sudden and Severe Economic Dislocation Loan Program

Agency: CA Trade and Commerce Agency

Program: Sudden and Severe Economic Dislocation Loan Program

Program Description: The Sudden and Severe Economic Dislocation (SSED) Loan Program is an economic development revolving loan fund provided through a partnership with the US Department of Commerce, Economic Development Administration, and the Trade and Commerce Agency. The overall goal of the program is to provide capital to create and retain jobs in areas of the state affected by plant and military base closures, defense downsizing, industry layoffs, Presidentially declared disasters and other economic problems which have contributed to job loss in California. SSED is designed to be used in conjunction with private lending and investment sources to complete projects that would not normally qualify for conventional financing. Loan proceeds may be used for land and buildings (excluding construction), machinery and equipment, and working capital.

Financing objectives are flexible, however projects receiving priority consideration include:
Re-employment of recently dislocated manufacturing employees; Re-employment of dislocated civilian and military personnel affected by military base closures; Retention of jobs by suppliers and contractors affected by defense downsizing; Providing capital for the manufacture of new technologies; Development of identified growth industries; Diversification of rural economies through the attraction of resource-based manufacturing.

Eligible Communities: The SSED loan program targets for-profit businesses located in areas of California designated as eligible by the Economic Development Administration.

Funding Information: Businesses may borrow from $25,000 to $500,000. Loan terms may go up to 20 years, depending on the use of the loan funds.

Timelines: Applications are accepted year round.

Contact: Linda Ng, Program Manager

Sudden and Severe Economic Dislocation Program

Phn (916)322-8311

Fax (916)322-7214

Int www.commerce.ca.gov/index.html

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