Areas Served: Statewide California
PURPOSE The California Small Business Loan Guarantee Program is used to encourage banks to make small business loans that otherwise would not be made.
Special emphasis is placed on the creation and retention of jobs.
USE OF FUNDS – Working capital – Equipment purchases – Inventory – Contract financing – Business expansion – Lines of credit – Real estate
FINANCING METHOD Banks will direct loan to borrower.
The Financial Development Corporation will issue state guarantee up to 80% of the loan.
QUALIFICATIONS – Proceeds must be used for small businesses located in the State of California.
– Borrower must show repayment ability – Most small businesses are eligible to participate in the program including corporations, partnerships and sole proprietorships.
– It must be a small business with no more than 750 employees.
MAXIMUM GUARANTEE AMOUNT $1,000,000 for each borrower.
MATURITY Maximum of 7 years.
INTEREST RATE Market rate as negotiated by lender and borrower.
COLLATERAL Available business and personal assets (machinery, equipment, accounts receivable, inventory and real property).
FEES – 2% of the guaranteed portion of the loan – $250 processing fee
Contact InformationState of California Business, Transportation and Housing Agency
Address: 980 9th St, Suite 2450
City: Sacramento
State: California
Website:
http://www.calsta.ca.gov/res/docs/pdfs/2012/Gov%20Reorg%20Plan/Letter_and_Summary%5B1%5D.pdf
Leave a Reply