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1. State Guarantee
Loan Program
The purpose of this
program is to encourage local banks to make small
business loans that are not traditionally bankable.
Emphasis is on the creation and retention of jobs. Use
of funds include, but are not limited to: Business
Acquisition, Equipment & Fixture Acquisition,
Improvements, Working Capital, and Accounts Receivable.
If approved, this program provides the collateral or
guarantee many small businesses find difficult to
establish when applying for a traditional business loan.
Maximum Loan Guarantee
Amount: $500,000
Maximum Loan
Guarantee Percentage: 90%
Term: Maximum 7 years for Term
Loans. Maximum 1 year for Line of Credit.
Collateral: Available business
and personal assets (machinery, equipment, A/R,
inventory and property).
Fees: 2% of the guaranteed
portion of the loan.
http://www.bth.ca.gov/programsinitiatives/sblgp.asp
2. Micro
Loan Program
This program is to
provide permanent working capital for smaller
businesses. The business has options of applying for a
term loan, line of credit or both, but the total
guaranteed amount cannot exceed $25,000.
Benefits to
businesses using the State Guarantee Micro Loan Program:
develops banking relationships; flexibility to increase
loans; credit history reported; overall lending rates
can be lowered by having multiple accounts with one
lender.
Term Loans: Maximum
guaranty is 100% of loans for $25,000. Maximum term is
eighty-four (84) months.
Lines of
Credit: Maximum guaranty is 100% of loans
for $25,000. Maximum term is twelve (12) months.
Collateral: Available business
and personal assets (machinery, equipment, A/R,
inventory and property).
Fees: 2% of the guaranteed
portion of the loan.
3. Disaster Bridge Loan
Program
This program helps small
businesses obtaining financing needed to recover from
losses caused by natural disasters in area declared to
be in a State of Emergency by the Governor. The program
operates under specific timeframes and limited funding
for an individual borrower.
Hancock has served
the victims of the aftermath of April 29, 1992 Los
Angeles Civil Unrest and the 1994 Northridge Earthquake.
Loan guarantee term and condition may vary
dependant upon the nature of the disaster. Please
contact us if you have any questions.
http://gov.ca.gov/press-release/7849/
http://www.bth.ca.gov/agriculture/10-07fire.asp
4. State
Bond Guarantee Program
The purpose of
the program is to allow greater participation by small
contractors in State public works contracts. The State
will benefit from increased competition leading to lower
bids. Additionally, the program applies to many kinds of
federal government, local government and non-public work
contracts.
Benefits to businesses using the State
Guarantee Micro Loan Program: develops banking
relationships; flexibility to increase loans; credit
history reported; overall lending rates can be lowered
by having multiple accounts with one lender.
Maximum Loan Guarantee
Amount: $350,000
Term: Bond Lines are open for
a 12month period.
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