Microloan Program

Description

To provide credit and technical assistance to new or expanding small enterprises.

Use of Funds

Inventory, accounts receivable, machinery, and equipment, leasehold improvements and remodeling expenses are eligible. Real estate purchase and new construction are not eligible.

Financing Method 

Cal Coastal offers direct microloans through the SBA Microloan Program

Qualification

The Microloan Program lends to owners of new or expanding small and micro enterprises to finance business startup and expansion.

Maximum Amount

Loan amounts range from $5,000 - $35,000.

Maturity

Loan terms are from 1 to 6 years.

Interest Rate

Interest rate is negotiated by lender and borrower at time of funding (average rate is 8% — 10.5%).

Collateral

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

Fees

$300 loan administration fee on direct loans, $250 and $150 fee on guaranteed loans.