AboutState Small Business Loan Guarantee Program
This loan guarantee program offers protection to the lender against potential losses incurred from new or existing lending relationships. The loan guarantee is backed by a trust fund set up by the State of California funded with federal dollars. This loan guarantee can be utilized by commercial banks, Certified Development Financial Institutions (CDFI’s) or credit unions. Normally, the borrower works directly with the lender; the lender then works directly with Valley Small Business Development Corporation to secure the loan guarantee.
Please see Ibank website for more detail:
Loan Purpose
- Purchase, construct or improve real estate or facilities
- Purchase and installation of equipment
- Permanent working capital
- Purchase of inventory
- Refinance pre-existing debt with a new lender with the extension of additional credit
Qualification
- Good credit history
- Adequate repayment capability
- Adequate collateralization
Maximum Limit
- 80% loan guarantee up to $2,500,000 for either term loan or a line of credit
Rates and Terms
- Set by commercial lender
- Guarantee up to 7 years
- Balloon payments are allowed
- Non-profits are eligible recipients
Guarantee Fees
- 2 ½% of guarantee liability
- $250 documentation fee
Borrower Contribution
- Contingent upon project
