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.
- 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
- Working capital
- Export financing
- Franchise fees
- Business expansion
- Lines of credit
- Gap financing
- 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