Areas Served: Statewide California
CEDLI’s small business loan program, called the Co-Lending Program, provides capital to growing businesses in both urban and rural areas that are currently not able to qualify for conventional bank financing.
All small businesses in all industries are eligible for financing.
Providing access to minority and women owned businesses is a high priority.
CEDLI works in partnership with its member banks in the Co-Lending Program by funding up to 50% of the loan requirement of a business in the form of subordinated debt, while a member bank funds the other 50% or more of the financing need.
Total Financing Need – The Co-Lending Program may be used to fund needs from $100,000 to several million dollars.
CEDLI Amount – $50,000 minimum to $500,000 maximum investment by CEDLI in the form of subordinated debt.
CEDLI investment amount not to exceed a maximum of 50% of the total financing.
Loan Structure – Term Loans with a maturity of up to seven years, amortization up to ten years.
Interest Rate – Pricing in accordance with risk, approximately prime plus 2 – 5 % p.
a.
Minimum rate 8.0% p.
a.
– Origination Fee – 3.0% loan origination fee plus loan documentation fee for reimbursement of legal expense.
– Use of Proceeds – Equipment purchase, permanent working capital, business acquisition, lease hold improvements, financing accounts receivable and inventory.
Loans for speculative purposes will not be considered eligible.
Borrower Eligibility Target Borrower – All small businesses are eligible for CEDLI loans in both urban and rural areas, a priority is placed on making the program accessible to minority and women owned businesses, as well as businesses that are located in low income communities and rural areas.
Size of Business – Small businesses with up to approximately $10 million in sales.
Type of Business – For profit and nonprofit businesses are eligible.
Operating History – Must be in operation for at least 12 months and located in California.
Financial Criteria – Small business is profitable in latest 12 months with positive trends in future cash flow.
– Small business has positive tangible net worth.
– One year financial projection demonstrating adequate debt service capacity and a debt service coverage ratio of 1.1x or greater.
-No major derogatory personal credit on part of principals of small business.
Contact InformationCalifornia Economic Development Lending Initiative
Address: 1333 Broadway, Suite 604
City: Oakland
State: California
Website:
http://www.cedli.com/index.php?page=Programs&sub=Co-Lending_for_Small_Business
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