Loan Guarantee Program

Description

To promote small business enterprises with special emphasis on assistance to those who will create or retain jobs.

Use of Funds

Inventory, accounts receivable, equipment acquisitions, farm production and small business loans, Revolving lines of credit, short and intermediate term loans.

Financing Method 

Private lender will provide the funds. Cal Coastal will guarantee up to 50% of loan.

Qualification

Borrower must have received a commitment from a lender that participates in the guarantee program.

Maximum Amount

$500,000 guarantee for each business project

Maturity

Maximum term of seven years

Interest Rate

Market rate as negotiated by lender and borrower.

Collateral

Available business and personal assets (machinery and equipment, accounts receivable, inventory and real property)

Fees

2.25% of the guaranteed portion of the loan and a $250 documentation fee.