Tag Archives: Lending

Blog, Client Success Stories

Michelle Honath Brings Free-Spirited Fashion to Sacramento With Opening of Wildflower Daydreams Clothing Boutique Permanent Storefront

From a young age, Michelle Honath has understood that clothes are more than just what we wear: they show the world who we are. The philosophy that personal style can function as a reflection of our values, ambitions, and quirks has informed much of Michelle’s career. After graduating from Cal Poly Pomona with a degree in Fashion Merchandising, Michelle worked in product development for several multinational apparel brands. Inspired by the ethos of surf brands like Roxy and Billabong that empowered buyers to express their love for the outdoors, she took her knowledge of the fashion industry and set out on her own entrepreneurial journey. With Wildflower Daydreams, Michelle curates a collection of whimsical, Bohemian attire with the goal of helping customers embrace their free-spirited side. Now, with a loan from California Capital, Michelle is poised to make a greater impact in the Sacramento community with a new permanent retail location, opening next weekend.  

AN UNPLANNED ADVENTURE  

Even with Michelle’s thorough knowledge of the fashion industry, launching a small business has been a process of adjustment and resilience. In fact, Wildflower Daydreams is the second iteration of Michelle’s entrepreneurial vision. Before starting the boutique, Michelle had a t-shirt brand that she ended up discontinuing–but the experience was invaluable for her as a business owner.  

“With my first business, I learned how to set up a business checking account, file an LLC, use QuickBooks, so many of the business basics,” explains Michelle, adding that some of the lessons were more philosophical. “I realized that it’s okay if you fail, and you won’t be perfect your first time. Everyone can be better, but just go out and do it!”   

With this positive mindset, Michelle regrouped and launched Wildflower Daydreams, after reflecting on her goals as a business owner. She knew that, more than just selling clothes, she sought to connect with people.  

“I started this boutique to help women feel great and find clothing that fits with their style,” she says. “We get dressed in the morning and the outfit can help you conquer the world–when you look great, you walk differently. It keeps me going when people discover my brand and say ‘Wow, this is me’.”  

INVESTING IN HER VISION 
 

Michelle has been strategic in achieving her mission of helping women express themselves through fashion. Taking the lessons she learned with her first business, and combining it with her insight into product sourcing and development, Michelle launched an online store. She built up her inventory slowly, paying up front for the merchandise, and continued building her brand through a growing social media presence. To engage even more with her clientele, Michelle began attending fairs and small business pop-up events throughout Sacramento–and the “omni-channel” experience has been key.  

“In person, I can help my clients find the right piece for them, and they can get a better sense of the experience we offer.”    

After building up a strong following, Michelle was ready to establish a permanent presence in the Sacramento community in the form of a brick-and-mortar storefront. To fund the expansion, Michelle knew she would need to move away from bootstrapping her inventory purchases and make a larger investment. After securing a lease for a location in Midtown, Sacramento, Michelle worked with the California Capital Lending Center and was approved for a loan to put towards inventory and working capital expenses.  

“I started learning that you can go as far as you want without investing, but once you invest, it helps you grow faster. It adds fuel to the fire of the direction you’re already going,” explains Michelle who also saw the loan application process as a learning opportunity. “Going through the loan process helped me solidify where I’m going with my business. I had to do my financial projections, which was really helpful for taking stock of where I was, and using a critical approach to plan for the future.”  

CELEBRATING NEW BEGINNINGS 

Michelle is set to celebrate the grand opening of the Wildflower Daydreams Clothing Boutique on October 15. While this step on Michelle’s business journey comes after years in the fashion industry, it is in many ways just the beginning. Nestled in the heart of Midtown, at 815 16th Street, Michelle is hopeful that the storefront has a future as a versatile community space. In addition to connecting with her customers on a daily basis, Michelle is looking forward to opening up her shop for regular events, pop-ups featuring other local businesses, and other opportunities for gathering. With Wildflower Daydreams, Sacramento’s fashion-forward adventurers have found a new home.  

The Grand Opening event for Wildflower Daydreams will take place on Saturday, October 15 and Sunday, October 16 from 10am to 6pm. Visit them during the weekend at 815 16th Street in Sacramento for a free gift with purchase.  Stay up to date on new product offerings by following @shopwildflowerdaydreams on Instagram.  

Client Success Stories

How a Vision for a Vibrant Creative Economy Led Two Filmmakers to Open a Unique Creator Space in Sacramento With Funding from California Capital

May  31, 2022 | When Kellen Lor met Pedro Garcia in 2017, he wasn’t looking for a business partner. They both happened to be working on a music video for a mutual friend, and Kellen immediately admired Pedro’s skill behind the camera. Looking for tips on how to expand his filmmaking beyond self-education on YouTube, Kellen sought to pick Pedro’s brain. The pair quickly realized that their ambitions, artistic vision, and work ethic were aligned, and began creating together. The same year, they launched Hidden Temple Media, a film production house.  Now, with financing from California Capital, they’ve launched Imported Studios, a studio space with ready-made sets available for rent by fellow filmmakers–and they’re set to become key players in expanding opportunities for Sacramento’s diverse community of creators.   

Sacramento filmmakers

Pedro (L) and Kellen (R) worked at ABC 10 before launching their first business. Photo: Francisco Kuhl.

To be sure, the pair have come a long way in the past five years. “The first few years, we were working minimum 14-hour days,” explains Pedro who, along with Kellen, was working full time for ABC10 while establishing Hidden Temple. “The basic idea was that we were two hardworking individuals who had a similar goal, and could put our resources together and rely on sweat equity.” Through collaboration with local artists they trusted, they stayed focused and gained momentum.  

Hidden Temple’s capacity exponentially increased through a mentor partnership with media firm FutureNow, and Kellen and Pedro were able to hire two employees, maintain a cadre of contractors, focus on commercial and documentary work, and bring in steady money.   

Problem Solving, Business Growth

At this point, looking to decrease their workload while increasing capacity, the founders were ready to bring Hidden Temple into a larger, more established studio space. “We were trying to solve a problem, and we started a business,” laughs Pedro.  

The idea for Imported Studios was born at this juncture, and grew to fit within a goal shared by individuals and institutions across the city: developing and retaining Sacramento’s creative workforce.  

“A lot of the problems we saw with creatives in Sacramento were with finding controlled locations [for filming],” explains Kellen. “You can get a short-term rental home, but once you start bringing in big lights and cameras, the owners don’t like it.”  

Expanding Sacramento’s Creative Capacity

As experienced Sacramento filmmakers, the pair knew that most creators in the area were traveling to Los Angeles to solve this problem by renting studios that included ready-made and customizable film sets.  

sacramento filmmakers

“The Greenery” set at Imported Studios.

“A lot of production studios in Sacramento only offer green screen infinity (or cyclorama) walls, which are great. But we didn’t want to blend in with the competition,” says Kellen. “We wanted to bring the L.A. demand up here and open a space for creatives to use it and bring money to Sacramento as well.”  

Ultimately, these aspirations defined what Imported Studios would offer. To stand out from other local studios, this new space would feature 24-hour availability to accommodate varied schedules; fully staged, 3-walled sets that filmmakers can customize to fit their vision; and a sound-dampened, warehouse location to allow creators to use sound and other special effects worry free.  

Accessing Capital

After translating their ideas into an actionable business plan, the search for financing began. In need of seed capital to build sets, secure a lease, and launch, Pedro and Kellen applied for funding through several banks–but because Imported Studios was a startup, traditional lenders were hesitant to take them on. That’s when their mentor at FutureNow suggested looking into non-traditional funding options, and they turned to California Capital.

Imported Studios launch event. Photo: Francisco Kuhl.

The loan application process, reflects Pedro, put the endeavor into perspective. “Getting financing was the biggest obstacle we’ve overcome as entrepreneurs,” he says, recalling the challenges the business partners faced during the early days of Hidden Temple. “We had multiple jobs back then, but we didn’t have as much weight on our shoulders, so failure wasn’t as scary. Now we have this other business so it’s higher stakes.”  

Partnerships and Service

Imported Studios ultimately received financing through the California Capital Lending Center, and opened their doors in April of 2022. They plan to begin expanding their clientele through events and workshops designed to get creatives in the door–both to see what the studio has to offer, and to dream up their own uses for the space. Beyond serving their own business interests, Kellen and Pedro want to see the space become a hub for building the Sacramento area’s creative workforce.   

“Sacramento hasn’t been known for media production. We want to change the narrative and let people know that we have experienced creators,” says Kellen. To have that impact, building connections with leaders will be crucial.  

sacramento filmmakers

Kellen and Pedro plan to use the warehouse space for workshops & trainings.

They plan to collaborate with the film program at Sacramento State to bring students in for free or discounted training and workshops, and they’ve met with the City’s official film office, Sacramento Film + Media, who is keenly interested in developing a strong contingent of local filmmakers. Through these partnerships, Imported Studios is poised to play a key role in establishing Sacramento as a renowned location for artists of all stripes to find success.  

Black-Owned Business, Client Success Stories

Turner & Turner Electric Seizes Contract Opportunities and Creates Jobs With Loan from California Capital

Turner & Turner Electric

March 24, 2022 | As a licensed general contractor and certified journeyman electrician, Ronald Turner serves the Stockton area with Turner & Turner Electric, Inc, which he co-owns with his wife, Jehnell Livingston-Turner. After spending several years in Louisiana, where he applied his contracting skills to help rebuild from the damage caused by Hurricane Katrina, Ronald returned to California. He soon realized that, because of the Great Recession, residential and commercial contracting jobs would not provide steady business. Getting certified to bid on government contracts, particularly with the Department of Transportation, was the key to continue operating Turner & Turner Electric: In addition to the prospect of large projects, as a veteran, Ronald was eligible to certify Turner & Turner Electric as a Disabled Veteran Business Enterprise and a Service Disabled Veteran-Owned Business, which opens up unique resources and set-aside government contracts. 

Finding new opportunities

After attending a seminar hosted by Norcal PTAC where they learned about California Capital FDC’s suite of business services, Jehnell began working with Women’s Business Center counselor, Charles Thomas. Charles helped Jehnell write an actionable business plan based off of a capability statement she had created, but it was not until several years later that the opportunity to apply for a loan through the California Capital Lending Center came up. As part of the Caltrain Modernization Early Investment Program, Caltrain’s program to electrify their transportation operations, Turner & Turner Electric secured a contract to install poles and light fixtures at the service’s electric power stations. With this sizeable job, a bid submitted for a second contract, and plans to apply for a third, an infusion of working capital would make the growth more manageable. 

Capital infusion creates jobs

 “I had never considered getting a loan,” explains Jehnell, who manages the operations and administration of Turner & Turner Electric. “But I was working with Charles and Daisy [Po’oi, Lending Center Portfolio Manager], and they both encouraged me to try, just try and see what happens.” Jehnell and Ronald decided to apply for a loan, which proved to be an enlightening process. Being loan-ready meant considering details of their business that they hadn’t before, such as the importance of keyman insurance coverage. “When small business owners come from Corporate America, like I did, there are many details [of business ownership] that they don’t think about because they’re the employee,” says Jehnell, emphasizing the key role that free information sessions offered by lenders play in making capital accessible. “A lot of times, people don’t take advantage of free services in their community to know what’s out there.” 

Turner & Turner Electric was approved for a loan, made possible through the Wells Fargo Open for Business Grant, in August of 2021–and the impact has had a ripple effect on their community. With part of the loan going towards payroll expenses, Ronald and Jehnell hired three new employees, and their support has been crucial to navigating the fast-paced construction industry.  With this support, and continued guidance from their WBC counselor, Turner & Turner Electric is performing on their contracts, and keeping more opportunities in mind.

Black-Owned Business, Client Success Stories

Keeping Her Community Mobile: How Josephine Odom Pivoted Her Used Car Business with a Loan from California Capital

For Josephine Odom, the Founder and CEO of Stepping Stone Auto Sales, commitment to her business journey has meant everything. With over 30 years of professional and business experience, Josephine has always had a passion for helping others and ensuring they receive the best service and experience possible. Stepping Stone Auto Sales was inspired by Josephine’s desire to provide reliable transportation for individuals in underserved communities, and was established as a wholesale used car dealership in March of 2019. With support from the WBC, and a loan from the Lending Center made possible through the Wells Fargo Open for Business Grant, Josephine entered the retail car sales space in 2021. 

SEEKING GUIDANCE

In October of 2020, Josephine began working with the California Capital Women’s Business Center. Looking to overcome the challenges of operating her business during COVID-19, while also working full time as a truck driver for Old Dominion Freight, Josephine was matched with WBC counselor, Charles Thomas. She had completed the online business plan creat

ion course available through the Women’s Business Center, but still had plenty to work on. 

“[Mr. Thomas] helped me tremendously,” explains Josephine, who had not received one-on-one business guidance before. “I had a business plan, but I wasn’t sure how to do a balance sheet, and I didn’t know how to write a profit and loss statement.”

 Over the course of several months, Josephine overcame the challenges she was facing and was ready to begin advancing her business.  

PIVOTING FOR SUCCESS

Seeking a larger return on her investments in used car inventory, Josephine transitioned from wholesale to retail used car sales in 2021—but doing so required increasing inventory, and a significant capital infusion.

Working with the Lending Center, Josephine applied for a sizeable loan that would go towards buying new inventory and having working capital. The loan application process was detailed, but thanks to the work she had done creating her business plan, Josephine was prepared. “ I had learned about the 5 Cs of Credit and other topics, which helped me to answer the questions in more detail,” explains Josephine, who was ultimately approved for a sizable loan.  

AGILE CLIENT SERVICE

All that was needed was for the closing paperwork to be signed and processed, but with the California Capital office still closed and Josephine’s truck driving job keeping her schedule packed, the Lending Center got creative. The Lending Center’s portfolio manager met Josephine at the Stepping Stone Auto Sales lot in Stockton, and the two were joined by the chief lending officer via Zoom to finalize the closing documents. 

Since securing the loan, Josephine was able to increase her inventory, and Stepping Stone Auto Sales is now located on a lot with increased visibility. In addition to leveraging word-of-mouth marketing and increasing her inventory in 2022, Josephine recently established Stepping Stone Registration Services. With this new venture, Stepping Stone will be able not only to sell used cars, but to complete the automobile registration process for their customers in-house. “I am serving my community and keeping services in my community,” says Josephine, who is looking forward to building her clientele this year. 

California Capital News and Updates

The 5 Cs of Credit: What They Are, and How Lenders Use Them

Getting a small business loan is no small feat. It takes organization, foresight, and the ability to be realistic about business objectives–even if you are maintaining ambitious goals. But the need for a capital infusion is something that most business owners run up against during their business journey: according to Fundera, 43% of small businesses across the U.S. applied for a loan in 2020. 

For entrepreneurs and business owners looking to access financial services, knowing what lenders look for in loan applicants is key. Specific criteria can vary based on the type of lending institution one is looking to work with, but most lenders determine the loan readiness of a potential borrower by looking at The 5 Cs of Credit. This method incorporates both qualitative and quantitative aspects to determine creditworthiness–leading to a well-rounded, contextualized profile of a business. 

So what are The 5 Cs of Credit, and how does a mission-based lender like California Capital use them when working with clients in need of a loan? 

CHARACTER

The applicant’s credit history  

An applicant’s history of loan repayment or defaults is a major factor in determining creditworthiness, and in many cases is considered the most comprehensive element. Lenders will look at an applicant’s credit report, which is produced by one of three major credit bureaus: Equifax, Transunion, or Experian. Credit scores–a number produced by an institution like FICO rating an individual’s credit health–are used by lenders to help evaluate a borrower’s creditworthiness, but the full credit report is essential. Often, mission-based lenders like California Capital take a more comprehensive approach. 

“California Capital does not have a minimum credit score. We are more interested in understanding the story behind the credit issues of a borrower,” explains Judy Fletcher, California Capital’s Chief Lending Officer. “In other words, we offer the borrower the opportunity to explain the situation that led to a less than healthy credit score and what [they are] doing to improve their credit standing.” 

While mission-based lenders take a holistic view of applicants’ credit histories, Ms. Fletcher cautions that there are standards. “If there is an extensive number of late payments, collection accounts, or charge offs, then we may not be able to approve a loan request.”

In addition to keeping records and documents as organized as possible, business owners preparing to apply for funding should take care to address credit issues to the best of their ability before applying. 

CAPACITY

DEBT-TO-INCOME RATIO 

Also referred to as “cash flow”, capacity looks at whether a business has the capacity to handle debt, in the form of a new loan, based on their income. Will the business have sufficient cash flowing in every month to cover loan payments? 

Historical cash flow is important for most lending institutions. Traditionally, most banks want the cash flow existing businesses over the previous three years to have a ratio of 1.25. California Capital’s underwriting guidelines allow for a 1.0 cash flow ratio. 

Unlike most banks, Ms. Fletcher points out, California Capital will consider applications from start-up businesses–not just established businesses. “[We] look to how prepared the borrower is in regard to the business plan and projections. Is the business plan well thought-out, complete and [does it]explain the ‘why the business, why now and why me?’ questions of a solid business plan,” she says.  

Along with working with a business counselor to ensure their business plan and financial projections are pristine, start-ups who are new to their industry should make sure they know the difference between a balance sheet and a Profit & Loss statement–also known as an income statement–to accurately determine their capacity.  

CAPITAL

THE BORROWER’S CONTRIBUTION 

Applicants are expected to contribute funds separate from the loan into their businesses, a contribution called an “injection”. This is essentially the cash–“capital”–put towards a potential investment by the applicant. When borrowers have what is called “skin in the game”, lenders consider them to be less likely to miss loan payments. 

This means that if a business owner is applying for a loan to purchase, for example, a new food truck for their restaurant business, they will need to invest a certain percentage towards the total cost, as a down payment. Most lenders will require at least a 20% injection in the business, while California Capital allows for a 10%-20% injection depending on how much the applicant has invested in the business already. (Factors such as industry experience and credit history also affect a lender’s ability to be flexible with cash investment requirements). 

For potential borrowers looking to strengthen their ability to contribute towards an investment, Ms. Fletcher’s advice is straightforward: save your money, as well as any receipts or invoices for business spending, as they could count towards your contribution. 

COLLATERAL

A TANGIBLE ASSET TO BACK A LOAN 

To ensure against a complete loss, most lending banks require some tangible asset to be taken as collateral. This could be land, property (such as a vehicle or other physical capital), or residence. To ensure equitable access to financial services, California Capital approaches collateral slightly differently.  

“Many of our borrowers do not own homes or have collateral they can pledge, which is why they come to us for financing,” explains Ms. Fletcher. California Capital does require, at minimum, a UCC-1 filing on business assets. “If we are financing a truck or a piece of equipment with a cost or value that exceeds $5,000, we will take a lien on that equipment or truck.” That is fairly standard practice. 

“But if, for example, the loan is for working capital (salaries, utilities, marketing, advertising, lease payments), and there is assets to take as collateral, then California Capital will still offer a loan assuming the business demonstrates the ability to repay the loan and other of the 5 Cs of Credit are met (i.e. industry experience, cash contribution, healthy credit).”  

One way in which California Capital operates loan guarantees similarly to traditional lenders is that any business owner who has 20% or more ownership interest in the company must personally guarantee the loan–meaning they promise to pay back the loan if the business fails. 

CONDITIONS

DETAILS OF THE LOAN AND ITS PROPOSED USES

The details of a loan, such as the interest rate and amount of the principal amount, can be affected by the conditions of a business, the industry, and the economy. This can also be the proposed uses of the loan (i.e., if it is intended to be used on specific physical capital), and is influenced by the applicant’s preparation. 

“We [also] take very seriously the experience a borrower has in the industry, how prepared they are in asking for a loan, the types of training they have taken, if they’ve reached out for technical assistance when needed, who they have on their team –CPA, bookkeeper, attorney, business advisor,” explains Ms. Fletcher. 

KEY TAKEAWAYS

While all lending institutions approach The 5 Cs of Credit a bit differently, applying for a loan is a thorough process. Potential borrowers should be ready to provide detailed documentation, but should also be hopeful about the opportunities available to them. Criteria are strict, but resources are available. California Capital considers all applications, whether start-ups or existing businesses, and does not restrict lending to particular industries. 

Any entrepreneurs ready to take the next steps towards loan-readiness should connect with a business counselor, or attend one of the Women’s Business Centers free webinars.  

California Capital News and Updates, Client Success Stories

Vive Cosmetics Brings Authentic Latinx Representation to the Beauty Industry—And With a Loan from California Capital, They’re Expanding Their Impact

May 28, 2021 | When Leslie Valdivia and Joanna Rosario-Rocha started Vive Cosmetics, the beauty industry was overdue for change. What has grown into an acclaimed national brand with a wide range of lip products began as a problem the pair knew they could solve: the need for authentic representation of the diverse Latina and Latinx communities that constitute the make-up industry’s largest consumer demographic. Now, as their influence grows, the founders are using a loan from California Capital’s Lending Center to expand their reach and continue effecting change.

ENTREPRENEURSHIP INSPIRED BY WOMEN

Leslie and Joanna met through their partners—now husbands—, who have been friends since high school. The two became friends, but did not have designs to enter into business together—until  2016,

L-R: Joanna Rosario-Rocha and Leslie Valdivia. Courtesy of Vive Cosmetics. 

when Joanna accompanied Leslie to BlogHer, an annual conference for Latina business owners, bloggers, and social media influencers.

“There was a lot of energy around creating digital content and being online at that time,” says Leslie, who was working in social media and attended the conference every year. “There was innovation happening, and Joanna was interested in learning more.”

During a session where entrepreneurs pitched their business ideas, the pair shared an “aha moment”. Participants framed their businesses as solutions to problems they had yet to see anyone tackle, and one entrepreneur in particular stood out. She preferred to dress conservatively because of her religious faith, and was frustrated by the lack of options that were both cute and modest.

“At one point she said, ‘Why should I have to compromise?’,” explains Leslie. “That’s when it clicked. Joanna and I looked at each other and said, ‘We have to do something’.”

A NEED FOR BEAUTY CON CULTURA

They immediately began to brainstorm around their shared passions, and quickly landed on make-up: Leslie has been a beauty enthusiast since middle school, and Joanna even had a make-up tutorial channel during the early days of YouTube.

Two models from one of Vive Cosmetics’ first campaigns. Courtesy of Vive Cosmetics. 

From there, a vexing question naturally presented itself: Latinx beauty shoppers outspend other demographic groups by nearly 30%, so why was it so difficult to find Latinx representation in the industry? Why aren’t their cultures celebrated authentically?

What Joanna and Leslie saw the more they researched the industry they had supported for so long was a system that relied on stereotypical and narrow depictions of Latinas to make a profit, ignoring the differences in ethnicity, skintone, gender, and shape that exist amongst Latinx beauty aficionados. What’s more, they struggled to find cosmetic or beauty brands that were founded, owned, or operated by Latinx entrepreneurs. It was clear that the industry could do better—Leslie and Joanna were no longer willing to compromise. They would create a brand to speak to and represent the Latinx beauty community as a whole.

VIVE COSMETICS: A LABOR OF LOVE

Joanna and Leslie got to work quickly, researching all elements of what it takes to develop, produce, and sell high quality beauty products. They worked with a California Capital Women’s Business Center Business Counselor to develop a business plan, all while maintaining their full time jobs.

Initially, the learning curve was steep. Neither founder had a background in beauty, retail, or even e-commerce—they were starting from scratch in a $62 billion industry.

“The biggest challenge was finding a manufacturer,” says Leslie. “It’s extremely difficult for small brands to even get a response most of the time, because so much is based on having the right contacts to get traction.”

Eventually, they connected with a manufacturer from New York, and continued to leverage resources

Vive Cosmetics Liquid Lipsticks. Courtesy of Vive Cosmetics. 

for business development available in the Sacramento community. They put their business plan into action, and received a start-up loan from the U.S. Small Business Administration via Opening Doors, a Sacramento-based nonprofit. With their first line of product ready, Vive Cosmetics was officially launched in 2017.

BUSINESS AND COMMUNITY: GROWING TOGETHER

Vive Cosmetics launched as an e-Commerce shop with a website and social media presence to live up to its mission of beauty con cultura—and beauty shoppers responded. To this day, the company has not invested in paid advertising or public relations campaigns, but their Instagram profile has grown to have over 40,000 followers—and was even highlighted by Congresswoman Alexandria Ocasio-Cortez last fall. As a result of this organic online success, Vive Cosmetics has been featured in Teen Vogue, The Huffington Post, and “O” The Oprah Magazine, among other national publications.

“We are built for community, by community,” Leslie explains, reflecting the role that social media, and Instagram in particular, has played for them over the past four years. “The way folks have responded to

Vive Cosmetics finds much of the talent they work with via social media. Courtesy of Vive Cosmetics. 

what we’ve offered has made us realize that it’s going to work. We’re doing the right thing.”

Vive Cosmetic’s digital presence, which now includes growing YouTube and TikTok profiles, has become central to the brand’s existential project of honoring Latinx communities and building equity in the beauty industry. Followers and online shoppers are able to see lip products modeled by Latinx talent that represents a range of skin tones, body types, and ethnicities, and browse lines that are “created with inclusivity in mind” . Moreover, they are invited to participate in the process of inclusivity.

“We find so many of the models, photographers, and creative directors we work with through Instagram,” Leslie says. “We’ll put a call out to our community when we’re working on a campaign and need talent, and we will get hundreds of people tagging their friends or reaching out themselves.” That’s one way, says Leslie, that Vive is working to increase opportunities for BIPOC beauty professionals on all sides of the industry. “Representation does not just mean on camera or in campaigns.”

NEW PRODUCTS, SAME PURPOSE

Thanks to their quick success since the 2017 launch, Leslie and Joanna were able to pay off the start-up loan. Now, their ever-increasing fan base is eager for new products. But the nature of product-based businesses means that new offerings must be formulated and developed before they can be

Samples from Vive Cosmetics’ Cremosa Matte Lipstick Line. Courtesy of Vive Cosmetics. 

sold, so any hopes for expansion would require a good deal of up-front investment. Still, explains Leslie, innovation is crucial.

“Looking at our metrics, we understand that when we launch new products, our customers come back,” she says. “We need to do new things. That will in turn help us grow our revenue and expand the company.”

Luckily, they had stayed in touch with California Capital, often having their Business Counselor review their applications for grants or pitch competitions—so they knew where to look when the company was ready for a larger capital infusion. They worked with California Capital’s Lending Center to apply for a sizable loan, and were approved for the full amount in February of 2021.

“It was a thorough and intense process, which is understandable given the amount we were applying for,” Leslie explains. “We had to create financial projections for the next three years, which was tough in the middle of a pandemic. But when we applied, our sales were growing, so we were confident that it was the right time.”

Collaboration Over Competition

Now, with capital to work with and a clear picture of their financial goals, the founders are busy expanding and planning for the future. Leslie now works for the company full-time, and they are working with a product development consultant who is providing valuable guidance as they create new products and reformulate some of their traditional offerings. They have already launched a new line of tinted lip balms, and collaborated with Brujita Skincare, a Latina-owned skincare company out of Los Angeles, to create a Rosewood Hibiscus Facial Mist.

As they seek to continue innovating their products to meet the changing needs of customers—including a foray into product lines beyond lipstick, and revamping their packaging to make it more sustainable—, synergy with other Latinx beauty companies will remain a priority. Since 2017, they have seen a shift in how many Latinx-owned companies are around, and that has come with different types of representation and different stories being told.

As they seek to uplift the Latinx community as a whole, the focus will be on collaboration rather than competition—staying true to their passion for beauty con cultura.

LISTEN: LESLIE AND JOANNA SHARE THEIR STORY ON LA RANCHERA SUPERSTATION (IN SPANISH, ORIGINAL AIR DATE AUGUST 8, 2021)

 

California Capital In The News, California Capital News and Updates

California Capital’s Chief Lending Officer Interviewed on “Your California Life”

Judy Fletcher, California Capital FDC’s Chief Lending Officer, was interviewed on the ABC 10 program Your California Life on Friday, February 26. Judy spoke with host Aubrey Aquino about how California Capital has helped businesses adapt to the economic impacts of Covid-19, and provided insight on what options are available to small business owners looking for access to capital and technical assistance. Watch the full interview below.

California Capital News and Updates, Client Success Stories

Faced With Covid-19 Challenges, California Gold Kettle Corn Pivoted Their Business With A Loan From California Capital FDC’s Lending Center

For Allison and Larry Carlson of California Gold Kettle Corn, the Covid-19 pandemic has posed some unique challenges. In 2019, their young business was gaining momentum, and they planned to spend two years taking their kettle corn tent to as many fairs, festivals, and events as possible. They would spend carefully and save thoroughly and, in 2022, pay outright for a customized food trailer—but when Covid-19 took hold across the country, news of cancelled events started flooding in. 

Time To Readjust 

Without the event-specific permits allowing them to operate their food tent, they would need a Mobile Food Facility Permit to stay in business. This meant buying a food trailer before they had planned, and it led them to California Capital FDC’s Lending Center. 

Allison Carlson of California Gold Kettle Corn with their fresh, all-organic kettle corn.

“[Allison and Larry] came to California Capital with a detailed business plan, well thought-out projections, and knowledge of the permitting process, ” says Judy Fletcher, California Capital FDC’s Chief Lending Officer. “She shared with us that at first, she and Larry were devastated by the impact the pandemic had on their business. But being resilient, they were not going to allow the shutdown to shut them down.”

Mission-Based Lending Supports Sustainable Success

With decades of entrepreneurial experience, The Carlsons know what it takes to grow an idea into a highly demanded product and a thriving business. Still, Allison reveals, they appreciated the diligence of California Capital’s lending team. 

“For them to be able to make me think even harder [about my proposal] is why I think that program is one of the best out there,” she says. “I actually have someone who is going to test my theory, test my projection.” 

To be sure, the Carlson’s dedication to securing a loan was not the only area in which their entrepreneurial tenacity was revealed. 

“At a time when shelter in place forced many closures and modified work schedules, it made it very difficult to schedule appointments with the CHP office to clear DMV inspection and the Department of Health when so many fires had threatened Northern California,” explains Daisy Po’Oi, Loan Documentation and Closing Officer. 

“Through it all, Larry and Allison found a way to capitalize on an opportunity in the mobile food industry that has now driven many businesses to explore even more so than ever before.” 

Ready For What Comes Next

With the support of their sons, minds that are constantly working to envision the next opportunity for their enterprise, and ongoing support from California Capital, The Carlsons are poised to come out of the pandemic stronger than ever. The food trailer will allow California Gold Kettle Corn to have a presence across the state, and Allison is hoping to begin onboarding new employees beginning this summer. Having spent the last three years mapping the landscape for mobile food sales, the family business is ready to focus their time at the events that promise the highest impact.

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