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The Business Press - www.bizpress.com
June 11, 2007
JAHMAL PETERS
jpeters@thebizpress.com
AmPac will extend opportunities to faith-based and other community organizations
AmPac Tri State Certified Development Co. has been certified by the U.S. Small Business Administration to provide financing to new and growing businesses in the Inland Empire.
The San Bernardino-based nonprofit corporation provides SBA 504 Loans to businesses primarily in the Inland Empire but also throughout California. It was originally the brainchild of bicoastal entrepreneur William Lowenstein, San Bernardino businessman Larry Polhill and Hilda Kennedy, former director of Inglewood economic development.
AmPac was approved as a nonprofit organization in May 2005 before receiving certification from the SBA earlier this year. In order to attain Small Business Administration certification, the 501(c)(3) organization had to complete an application and business plan approved by local and national SBA officials. The entire process took two years.
Along with helping small businesses attain loans, Ampac will extend opportunities to faith-based and other community organizations in accordance with a measure initially enacted by President Bush in June 2004.
In order to qualify for a loan arranged through AmPac borrowers must meet certain criteria.
The private sector must account for 50% of the financing and 10% must come from the business itself. The remaining 40% would be provided by the SBA 504 loan up to $2.5 million for most businesses and up to $4 million for manufacturers. According to Kennedy, the nonprofit has several prospective loans in its portfolio but since none have closed, she did not release any information about them.
The business can be any type of for-profit small business with either a net worth of less than $6 million [$7 million] or net profits after taxes under $2.5 million.
The business must use the loan proceeds for capital investment in land, buildings, leasehold improvements, renovations, construction, machinery and associated soft costs. Proceeds from loans may not be used for working capital.
A building occupancy of 51% is also required, however two or more unrelated businesses may each obtain a 504 loan to buy or build a building if together they meet the occupancy requirements.
Along with the financial criteria, the business must meet other requirements.
The business must promote job creation and retention by producing one job per every $50,000 borrowed from AmPac.
However businesses can also qualify for an AmPac loan if they are expanding veteran-owned or women-owned businesses, or they expand exports, aid rural development, revitalize a business district or fill a need created by federal budget cutbacks.
Its board members include Ontario Mayor Paul Leon and Kennedy's husband Brian, both of whom are pastors in the Ontario area.
AmPac has established a pastor's advisory committee that will meet quarterly to gain feedback and provide training to faith-based leaders on financing opportunities available through the SBA with the first meeting scheduled to take place in the fall.
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