How to Apply for a Loan
Step 1: Loan applicants must first be verified as CORE eligible (Verified CORE Applicant) under one of the classifications summarized in the section “CORE ELIGIBILITY”.
Step 2: Loan applicants must register for an account on the ElevateImpactSac.com website and complete the CORE loan application. Only on-line applications will be accepted.
Step 3: As a part of the application process, loan applicants must upload the following materials to their online loan application:
a) Verification email of CORE status from the Sacramento Asian-Pacific Chamber of Commerce (SACC) or the Greater Sacramento Urban League (GSUL) or other entity designated by the City of Sacramento to perform CORE eligibility verifications verifying the Loan Applicant’s equity status.
b) Bank statement first page with the name of the party that the loan check should be made payable to (either a Verified CORE Applicant as an individual or to a business of which Verified CORE Applicant(s) owns 51% or more)
c) Copy of legal identification showing Loan Applicant is at least 21, such as a driver’s license, passport, or California identification
d) Personal Financial Statement from the Loan Applicant
e) Prior year tax return
f) State cannabis license, if already obtained
g) Business organization documents, such as the Articles of Incorporation
h) Secretary of State filing for the business entity showing its name and that the entity is in good standing
i) A list of all parties who own 20% or more of the business
j) Operating agreement or other legal document which lists the owners of the company and their ownership percentages. Note: 51% of owners must be Verified CORE applicants.
k) Business planning documents including:
a. Business Plan
b. Budget/Use of Proceeds Statement for the requested loan amount
c. Description of how funds will be used
d. Monthly Financial Projections for a 12-month period
l) Real estate documents including:
a. Confirmation from City of Sacramento Planning Division that zoning of proposed business location allows for the type of cannabis business Loan Applicant intends to open
b. Fully executed lease agreement, or an addendum to a lease agreement, containing:
i. Term of at least five years duration or a lesser term with automatic extensions equaling at least five years, and
ii. Details of the amount and timing of any automatic rent increases, or
iii. Ability for tenant to terminate lease with agreed-upon notice, but ability for property owner to terminate only upon cause
m) Signed Use of Proceeds Memo certifying that funds will be used for City of Sacramento cannabis operations
STEP 4: Application Review: A loan application will be reviewed by Elevate Impact to ensure that the Loan Applicant has uploaded the required materials and that such materials are up to date, have not expired and are in compliance. Thereafter:
a. If the loan application is complete, the Loan Applicant will receive an email saying that the application has been sent to the Loan Committee for review.
b. If the loan application is not complete, the Loan Applicant will receive an email explaining which documents are missing and/or which application requirements have not been met. The Loan Applicant will then be able to complete and resubmit their application.
STEP 5: Loan Committee Review: A completed Loan Application will be submitted to the Elevate Impact Loan Committee for loan review and scoring according to the Equity Loan Assessment discussed below (scorecard attached). A loan application must receive a minimum score of 60 out of 100 points to be approved for a loan.
a. If the loan application scores 60 points or more, the Loan Applicant will receive an email saying that the application has been approved and will be sent for loan closing.
b. If the loan application scores 59 points or less, the Loan Applicant will be contacted to explain what they can do to improve their score. The Loan Applicant can then resubmit their Loan Application to improve their score.
STEP 6: Loan Closing: Once approved, the loan will be closed as follows:
a. Loan documents will be prepared
b. Approved Loan Applicant to register through City of Sacramento self-service portal where they will upload the following documents:
i. W9 Form with the name that the loan check will be payable to
ii. CA-590 Forms
c. Meet remotely with the Loan Applicant to review, complete and electronically sign the closing documents.
d. Send completed loan documents to City of Sacramento for City’s signature and payment processing.
STEP 7: Loan Funding: The City of Sacramento will then electronically sign the loan documents. Once the loan documents are executed, the City will mail a check for the loan proceeds to the address submitted in the Supplier ID self-service portal.