The Santa Barbara Chamber of Commerce and Scheinfeld Center have teamed up to offer City College students the opportunity to apply for a loan to start up new businesses.

The California non-profit corporation and the Scheinfeld Center calls the microloan program STEM², Student Entrepreneur Microloans & Mentors.

Melissa Crawford, director of the Scheinfeld Center, said this is a great opportunity, especially for young entrepreneurs since it is not easy for them to get bank loans.

The time is crucial as well because bad economic times often boost start-ups, Crawford added.

The maximum amount of the loan is $2,500, and it is only available for the purpose of purchasing equipment, business formation fees, and licensing or web development.

The maximum term for the loan is five years with an interest rate of 3.25%.

Beside the financial aid, the borrowers will also have the opportunity to get help and assistance from an experienced mentor in developing and sustaining their businesses.

They will also be given a free three-year membership in the Chamber of Commerce, for a total value of $900.

To find out if you are eligible for the loan, or to get information on how to apply, contact Melissa Crawford at [email protected], Student Service Center, office 280D.