This week in Santa Cruz County business: Santa Cruz County Bank a top SBA lender; new grocery store coming to former Kmart

Each week, we’ll be taking a closer look at the movers and shakers, the growth of industries, and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene, each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

Santa Cruz County Bank tops other banks for number of small business loans issued locally

Santa Cruz County Bank issued 23 U.S. Small Business Administration (SBA) loans totaling $22.58 million to small businesses in greater Silicon Valley last year, making it the top such lender in the region.

SBA loans are backed by the federal agency, enabling financial institutions to provide business loans with more favorable terms than conventional loans. These are often a better option for small business owners who might not qualify for a traditional business loan, and the program helps encourage banks to lend to such companies. 

Santa Cruz County Bank, which marks its 20th anniversary next month, continues to be one of the biggest local providers of SBA loans in the region, including Santa Clara, Santa Cruz and Monterey counties. Businesses receiving these loans include grocery stores, restaurants, gas stations and retail stores, among others.  

“Our lending volume confirms our commitment to supporting small businesses to promote economic development and job growth,” said Susan Chandler, senior vice president and director of SBA lending.

New supermarket coming to former Kmart in Watsonville

The former Kmart building at 1702 Freedom Blvd. is soon to get a new life as a grocery store. Vallarta Supermarkets, a Hispanic grocery chain based in Southern California, plans to open at that location in late spring or early summer, according to Vallarta spokesperson Lizette Gomez.

Watsonville made a lot of sense for a new location, given its proximity to a newly opened Vallarta supermarket in Salinas, according to Gomez. 

Vallarta was founded in 1985 in Van Nuys and operates over 50 stores throughout Southern and Central California, including that latest location on Davis Road in Salinas. 

Gomez said it was too soon to know how many employees the store plans to have, as details are still being finalized.

The Kmart closed in August 2021 following the bankruptcy filing of its parent company, Sears, Roebuck and Co. Just a handful of stores remain in business, including one in Miami. 

In October 2021, Watsonville city officials sought to declare the property a public nuisance due to illegal camping and sanitation issues. As the Pajaronian reported, the city was able to work with the property owner to put up barricades and fencing to abate many of the issues. The property has been vacant ever since.

Ch-ch-changes: Openings, closings and other developments

• Ivy’s Porch in Scotts Valley closes: The vintage and gift store has closed after 25 years at its Scotts Valley Drive location. A post on the store’s Facebook page said its landlord declined to renew the lease; owners might look for a new location in the future.
• Michaels opening planned for late winter, early spring: Michaels craft store expects to open in Brown Ranch Marketplace in Capitola in mid-February or early March, according to a company spokesperson. Previously, the company hoped to open in January, but the exact date is still to be determined.
• Capitola Bar & Grill closing at end of month: The Esplanade business has announced it will shutter at the end of January, following an ongoing dispute with the landlord. The bar and restaurant opened in June 2021.
• Santa Cruz Mountain Brewing sold: The Westside stalwart has been sold to the owners of Sante Adairius Rustic Ales and Private Press Brewing. See Lily Belli’s story here for more.

Got hires, promotions or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

Looking at the numbers

• 3X: That’s how much more power Ambient Photonics says its solar cell technology can provide compared to other indoor solar solutions in some of the lowest light conditions. The Scotts Valley-headquartered company is showcasing its indoor solar technology, which can power everything from remote controls to computer mice, at CES in Las Vegas this week. CES is the world’s largest consumer electronics and technology trade show, bringing in more than 180,000 people each year.

Save the date

• Thursday, Jan. 11: The Santa Cruz County Chamber of Commerce hosts its first Business After Hours event of the year at Lookout’s offices on Pacific Avenue in downtown Santa Cruz. From 5 to 7 p.m., check out the new offices, visit with local business owners and get a local history lesson from Lookout’s own Wallace Baine. Register here.
• Thursday, Jan. 11: Looking to start your own small business as an artist? Idea Fab Labs will host an information session on how to get started. The class is $60 and runs from 6 to 8:30 p.m. More information and tickets here.
• Thursday, Jan. 18: The Santa Cruz County Chamber of Commerce holds its annual members breakfast at the Dream Inn. Details and registration here.
• Thursday, Feb. 1: The 2023 annual Titans of Tech event honors the individuals who have contributed to the local tech and entrepreneur community from 6 to 8 p.m. at Kuumbwa Jazz Center. Details and tickets available here.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

Business news worth reading

• Miramar restaurant could return to Santa Cruz Wharf (Good Times)
• Biden administration to unveil contractor rule set to upend gig economy (Reuters)
• Housing projects supplant Bay Area offices, stores as tech boom fades (San Jose Mercury News)
• One year after grad student strike, UCSC workers still pressing for better deal (Lookout)