Loan Program Overview

SUMMARY

In November 2020, the City of Sacramento established the Cannabis Opportunity Reinvestment and Equity (CORE) Capital program. CORE Capital is an interest-free, six-year term revolving loan program funded through a $3.83 million local equity grant fund awarded to the City by the Governor’s Office of Business and Economic Development (GO-Biz). Most importantly, loan repayment funds will be made available for loans to future CORE participants for their cannabis businesses.

For additional information, please see the section titled “CORE CAPITAL BACKGROUND”.

LOAN AMOUNT

CORE participants can apply for up to $150,000 in loan funding (“Loan Applicant”), including previous CORE Capital loans and Reimbursement funding, according to the Initial and Follow-on loan specifications described below. CORE Capital maximum loan amounts will be reviewed on a continuous basis and changes will be made based upon CORE participant demands as well as the remaining loan funds that have not been disbursed at the time of review. Initial and Follow-on loan specifications include:

  • Initial Loan: The largest amount available for an initial, or first-time, loan is $50,000 if an applicant has a signed business lease for a location or premise (“Leased Location”) or owns a location (“Owned Location”). A Verified CORE individual can apply for $50,000 per Leased or Owned location. Without a Leased or Owned Location the most an applicant can apply for is $25,000.
  • Follow-on Loan: Loan Applicants may apply for additional loans (“Follow-on Loans”) in increments of up to $50,000, without fully re-paying their prior loan(s), as long as they:
  1. Provide receipts showing they spent 70% of their previous loan on eligible expenses
  2. Are not delinquent and have made on-time loan payment(s)
  3. Have a signed business lease of Owned Location
  4. Are compliant with required licenses, permits and taxes
  5. Maintained verified CORE status


Maximum Aggregate Loans: A Verified CORE individual can apply for $50,000 per Leased or Owned Location for up to an aggregate amount totaling $125,000 for all loans outstanding. Verified CORE businesses (businesses with 51% or more CORE ownership) can apply for up to $250,000 in aggregate loans per Leased or Owned

Location, provided that one or more of the CORE individuals owning the CORE business is a signatory to the lease or owns the property. 


LOAN PARAMETERS

  • Primary Loan Terms:
  • Who may apply (Loan Applicant): Loan Applicants must have verified CORE status with the City of Sacramento.  See CORE ELIGIBILITY section.
  • Interest Free: The loan has no interest or is interest-free.
  • Loan Maturity: 6 years (72 months).
  • Use of Loan Funds: Applicant must use requested funds for a legal cannabis business in the City of Sacramento.
  • Loan Repayment: Loan repayments will begin on the first date listed on the loan amortization schedule found in the loan documentation provided to the borrower. Thereafter, monthly repayments are required, until the loan has been repaid in full. Sample repayment amounts are provided on the chart below:

Loan repayments are to be made as follows:

  • Via a check/cashier’s check/money order mailed to the City of Sacramento, Revenue Division at 915 I Street, First Floor, Sacramento, CA 95814
  1. Borrower name and invoice number to be written on the check.
  2. Copy of invoice to be enclosed with the check.  
  1. You will need your invoice number, customer id, and form of payment.
  • Pay cash in-person by making an appointment with the Revenue Division