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PROGRAM |
CALIFORNIA SMALL BUSINESS LOAN GUARANTEE PROGRAM |
| PURPOSE: |
To encourage banks to make small business loans that are not traditionally
bankable. Special emphasis is placed on the creation and retention of jobs.
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| USE OF FUNDS: |
Working capital
Equipment purchases
Inventory
Leasehold improvements
Contract financing
Business expansion
Lines of credit
Real estate
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| FINANCING METHOD: |
Bank will make direct loan to borrower. PCR will issue state guarantee for up to 90% of the loan.
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| QUALIFICATIONS: |
Proceeds must be used for small businesses located in the State of California. Borrower must show repayment ability.
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| MAXIMUM AMOUNT: |
$500,000 for each borrower.
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| MATURITY: |
Maximum term of 7 years.
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| INTEREST RATE: |
Market rate as negotiated by lender and borrower.
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| COLLATERAL: |
Available business and personal assets (machinery, equipment, accounts receivable,
inventory and real property).
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| FEES: |
2% of the guaranteed portion of the loan
.25% for lines of credit
$250 processing fee
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