San Fernando Valley Financial Development Corporation

California Small Business Loan Guarantee Program__________

The California Small Business Loan Guarantee Program enables a small business to obtain a term loan, line of credit or letter of credit when it cannot otherwise qualify for a loan. The program provides a lender with the necessary security, in the form of a guarantee, to approve a credit facility. The guarantees are issued on behalf of the State by the San Fernando Valley Financial Development Corporation (SFV–FDC). SFV–FDC primarily services the Northern Los Angeles and Eastern Ventura Counties but may service any request within the State of California.

Program Highlights:
Eligible Applicants	Include any small business as defined by the Federal Small Business Administration (SBA).
Eligible Use of Proceeds	Must be for any standard business purpose beneficial to the applicant’s business, such as expansion into new facilities, working capital, debt refinance or for the purchase of new equipment.
Loan Types	Term Loans, Lines of Credit and Letters of Credit
Maximum Guarantee Amount	$350,000, or up to 90% of the loan amount, whichever is less. The guarantee’s percentage may vary and is subject to negotiation between the SFV-SBDC and the lender.
Term of the Guarantee	May extend up to seven years. The loans are typically fully-amortized, but up to a 25-year amortization is allowed for owner occupied real estate.
Interest Rates and Fees	Negotiated between the borrower and the lender. SFV–FDC charges a guarantee fee of 2% of the amount guaranteed, plus a documentation fee of $250.
Collateral	Required, if available, but each transaction is tailored to meet the borrower’s financial situation.
Lender Requirements	NONE – Lenders use their own packaging procedures and documents in processing and closing loans.

The Guarantee Program benefits both Lenders and Borrowers. The program allows a business to not only obtain a loan it could not otherwise obtain, but to establish a favorable credit history with a lender. With that, the business may obtain further loans on its own, without the assistance of the program. Lenders will benefit from the ability to establish new lending relationships which can be fostered into long-term banking clients.

The Guarantee Program has helped businesses in many different industries ranging in size from small, family-owned businesses to larger corporations. More importantly, the SFV-FDC has made the dream of business ownership become reality to over a dozen clients. Working with over 10 local banks, the SFV-FDC has become an important financial resource within the community for its ability to make tough loans happen. Most importantly, however, is the impact the program has had on job creation - over 800 jobs have been created as a result of the financing from SFV-FDC.

If you have any questions regarding the California Small Business Loan

Guarantee Program, please give Antonio Pizano a call at (818) 205-1770