Lenders make first loan in Desert Cities Empowerment Zone

Public Record, The, Jul 21, 2000

RIVERSIDE - The Inland Empire Lenders Community Development Corporation (IELCDC) is proud to announce its first loan to a business located in the Desert Cities Empowerment Zone. The agency, through its microloan program designed to assist privately held small businesses in low-income areas, has loaned $50,000 to Desert Sea Ranch of Mecca, California.

The loan incorporates several special benefits originating from various government agency grants, which reduce the cost of borrowing and offer technical assistance. Special benefits include:

* Prime, fixed interest rate subsidized by IELCDC's EZ grant program.

* Extended amortization of the loan with no prepayment penalty.

* Loan fee reimbursement to borrower through a USDA Technical Assistance grant. The cost of fees (approximately $2,100) will be applied to the loan as principal reduction. * Free technical assistance training for six months from the Palm Springs Small Business Development Center subsidized by the California Statewide CDC.

Desert Sea Ranch operates an 80-acre aquatic fish farm capable of producing several million fish per year. In 1999, they sold 105,000 pounds of fish through various distribution channels. Their main crop is Channel Catfish, but they also produce Tilapia, Silver Carp and several ornamental aquarium fish and plants. "This loan will enable us to purchase state-ofthe-art equipment to significantly increase our production and operational efficiency," states Ted Kasckow, owner and manager of Desert Sea Ranch. "Without the assistance of IELCDC and its special loan programs, it's likely we would not have been able to secure the proper financing to help our company continue to grow," added Kasckow.

The IELCDC's mission is to provide loans to small businesses, focusing on those owned by minorities and women throughout Riverside and San Bernardino Counties, particularly in low and moderate income areas.

The goal of the organization's lending is to help businesses grow to the point that they can become conventional bank clients. "The IELCDC is a proven resource for small companies in Riverside and San Bernardino Counties because we provide proven loan programs and technical assistance that often make the difference between the ultimate success or failure of a business," says Michael Ocasio, Executive Director of IELCDC.

A key factor in the development of the relationship between IELCDC and Desert Sea Ranch was the technical assistance provided by Brad Mix, Manager of the Coachella Valley Small Business Development Center (CVSBDC). The CVSBDC, as part of their ongoing free consulting service, had been working with Desert Sea Ranch to develop an effective business plan and financial projections and decided to refer the company to IELCDC for funding consideration. "The diligent work done by Brad Mix and his staff at the Center was critical to the ultimate success of Desert Sea Ranch's application for funding," added Ocasio.

The IELCDC was organized in 1995 and created by the Riverside County Economic Development Agency and 24 banking institutions located throughout a six-county region, who have provided the organization's capital through a conventional lender. The organization is administered by the CDC Small Business Finance Corporation, which is an economic development agency chartered by the U.S. Small Business Administration.