PROJECT TARGETS PACOIMA FIRMS; LOANS EXPECTED TO EASE NAFTA'S IMPACT ON JOBS.
Businesses in this northeast San Fernando Valley neighborhood could, beginning today, qualify for a national loan program for small businesses in communities that have been hard hit by the North American Free Trade Agreement.
The national Community Adjustment and Investment Program, or CAIP, is a partnership between the North American Development Bank, the U.S. Department of Agriculture and the U.S. Small Business Administration aimed at assisting communities that have lost jobs as a result of the trade agreement among the United States, Mexico and Canada.
The program will be introduced today to Pacoima businesses. Qualifying small businesses in the Northeast Valley community will have access to the loan program under which the SBA guarantees major portions of the loans.
``There has been significant NAFTA impact in that area,'' said SBA spokesman John Tumpak.
Small business either now located in or soon opening in Pacoima's 91331 ZIP code are eligible for the loan program, said Bruce Hodgman, chief of finance for the SBA's Los Angeles district office.
Small businesses that receive the low-interest loans under the program will be required to preserve or create one job for every $35,000 in loans over a 24-month period, according to Dorothy Overal, deputy district director of the SBA's Los Angeles district office.
Under the program, the SBA guarantees up to $750,000 in loans. Additionally, the fee the SBA charges the lender to guarantee the loan - and that the lender would typically pass on to the loan applicant - will be picked up by the North American Development Bank.
The fee is determined on a sliding scale and ranges from 3 percent to 3-7/8 percent of the amount the SBA guarantees, Overal said.
For more information about CAIP, eligibility requirements and other rules, call the SBA's Los Angeles district office at (818) 552-3230 or the NADBank at (562) 908-2100.
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|Publication:||Daily News (Los Angeles, CA)|
|Date:||Jan 28, 1998|
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