State Loan Guarantee program

The Small Business Loan Guarantee program helps lenders make loans to borrowers who cannot qualify for conventional financing. It gives businesses a chance to build working relationships with financial institutions. Most small businesses are eligible to participate in the program including corporations, partnerships, and sole proprietorship.

Eligible Applicants

  • Small Businesses located in California with 1-750 employees.
  • Eligible Nonprofits

Use of Funds:

* All proceeds must be used in California.

  • Start-up costs
  • New construction
  • Inventory
  • Working capital
  • Export financing
  • Franchise fees
  • Business expansion
  • Lines of credit
  • Gap financing

Guarantee Terms:

  • Loans up to $20 million
  • Max guarantee is 80% of loan, up to $1 million
  • Guaranteed up to 7 years; bank term and/or amortization can be longer
  • Loans interest rate negotiated between lender and borrower
  • Qualifications based on lender criteria
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