First Foundation Bank Supports Recovery Loan Program for California Small Businesses

July 9th, 2021, Oakland, Calif. — TMC Community Capital (TMC CC), a nonprofit microlender focused on lending to under-resourced entrepreneurs in California, has launched a Recovery Loan Program for small businesses impacted by the coronavirus pandemic.  

The Recovery Loan Program, made possible in part by a generous donation from First Foundation Bank, is designed to support California’s small businesses—especially those located in economically disadvantaged and historically under-banked areas of the state. The loans are flexible, transparent and are designed to help businesses access the capital and advisory services they need to get through these challenging economic times. 

First Foundation Bank provided $250,000 in lending capital and a $25,000 grant to support the Recovery Loan Program. “This support makes a huge difference to impacted businesses in our community,” expressed Hanna Leen, TMC CC’s Program Director. 

Through the program, small business owners can take out loans ranging from $5,000 to $50,000, with a 2-5-year term and an extremely low (4-6%) interest rate with terms that help them recover before their first payment is due.  In line with their mission of equitable lending, TMC CC has committed that 60% of Recovery Loan recipients will be women business owners of color. 

Rhonda Drakeford of Drakeford Real Estate is one of the borrowers of TMC Community Capital’s new Recovery Loan Program for small businesses impacted by the coronavirus pandemic.  Drakeford Real Estate is a Black woman-owned business based in Oakland.  

“I started my business to assist first-time and low-income buyers to purchase their first homes,” Drakeford said. During the pandemic, she was making no income from her business. She borrowed $50,000 from TMC CC with 12 months of interest-only payments, allowing the business to get back on its feet before repayment.  

“This loan will allow me to catch up on my finances, start new marketing opportunities, and hire an assistant to help me expand,” said Drakeford.  

First Foundation Bank’s generous support made this loan program for equitable economic recovery possible. TMC CC has also financed several loans in highly impacted industries, like fitness and entertainment. 

Once selected for the loan program, as for all TMC Community Capital’s clients, TMC CC provides publicity for their small business borrowers through social media outreach and participation in their online community platform. Eligible businesses must have annual revenue under $3 million, be located in California, be in operation for at least one year, and have been adversely impacted by the coronavirus pandemic.