Four industries in one small city
Santa Cruz, nicknamed Surf City, was incorporated in 1791 and had 62,956 residents in 2020 across about 15.8 square miles. It is the largest city in, and the county seat of, Santa Cruz County. Wikipedia says its principal industries are agriculture, tourism, education and high technology, and that the city is a center of the organic agriculture movement, including the headquarters of California Certified Organic Farmers.
The South Pacific Coast Railroad arrived in 1880 and the Santa Cruz Beach Boardwalk was created in 1904, cementing its status as a seaside resort; the University of California, Santa Cruz was established in 1965, making it a college town. Technology companies have made their home there since the 1980s, including the Santa Cruz Operation, Plantronics and Parallel Computers.
The weather sets the calendar
Attractions include the Boardwalk, the redwood forests in the Santa Cruz Mountains and Monterey Bay, which is protected as a marine sanctuary. A cold, foggy week in June or a rainy weekend in July can drop a beach-adjacent business's revenue noticeably, while a hot weekend sells out inventory. Surf shops, cafes, rental operators and lodging all work this way.
College-town rhythms add a second beat. Students leave in summer, which can offset the tourist season with slower neighborhood sales for some businesses and a boost for others.
What owners tend to use working capital for here
- Ahead-of-season inventory: stocking surf, camping and gift items before the weather turns.
- Equipment for food and beverage: espresso machines, refrigeration and hoods that cannot wait.
- Farm and food producers: packaging, delivery vans and cold storage as organic and specialty product lines grow.
- Wage cover: keeping skilled staff through a fog-bound or off-season stretch.
For illustration only: a small specialty food producer buying a $45,000 refrigerated van may spread the purchase across the months in which the van is earning revenue, instead of paying cash out of reserves it also needs for ingredients and payroll.
Working through a foggy summer
Santa Cruz owners know a cold, gray stretch can cut a beach-adjacent business's sales for weeks. The question is how long you can carry fixed costs while it lasts. A simple calculation helps: take your monthly rent, payroll, insurance and loan payments, divide by four, and multiply by the number of weeks you want covered. That is your weather cushion.
If you do not have that cushion in cash, working capital can serve as one, as long as you are confident that normal sales will return. Before you request funds, check your last two summers' deposits to see whether the dip repeats; if it does, plan the cushion in advance rather than reacting each year.
How funding works with us
We fund Santa Cruz businesses from $25,000 to $5,000,000, in as little as 24 hours after approval. FICO scores of 500 and above are considered. We ask for about three months of business bank statements and no tax returns, and the application takes about five minutes with a soft credit pull. Sole proprietors can apply.
Watsonville and nearby communities fall under Santa Cruz County and the Central Coast. Apply here.