A loan guarantee program designed to assist small businesses that experience capital access barriers, the State of California Loan Guarantee Program helps businesses create and retain jobs, and encourages investment in low- to moderate-income communities. The Program is available to small businesses throughout the state of California.
Small Business Loan Guarantee Program
Loan Requirements
- Loan Amounts: $1,000,000 – $20,000,000
- Term Loans: Long-term financing needs (see Permissible Use of Loan Proceeds below)
- Commercial Real Estate Loans (must be at least 51% owner occupied): Guarantees up to seven years, loan terms can be longer.
- Lines of Credit (at lender term): Receivable financing and short-term working capital needs.
- Micro-Loans Available: Starting at $25,000
- Max Guarantee: 80% or $1M (whichever is less) outstanding loan guarantee liability per business, including affiliates.
- Proceeds must be used in the State of California.
- Bank determines financing structure and rate.
Permissible Use of Loan Proceeds
- Bridge Loans
- Building Purchase
- Business Procurement
- Equipment Purchase
- Inventory
- Start-Up Costs
- Tenant Improvements
- Working Capital
- Franchise Fees
- Acquisition of Land
- Renovation of Buildings
Business Requirements
- 1-750 employees
- The business activity must be eligible under the program and in one of the industries listed in the North American Industry Classification System (NAICS) codes list. (https://www.census.gov/eos/www/naics/)
- Eligible Small Business Entities:
- Sole Proprietor – Individual using legal name as business name that files a Schedule C, Schedule F, or has a fictitious business name or DBA statement (If the loan appears to be in the name of an individual, evidence of Sole Proprietorship will be required and may include a Schedule C, Schedule F, Sellers Permit, and/or fictitious business name or DBA) statement.
- Limited Liability Company
- Cooperative
- Corporation
- Partnership
- S-Corporation
- Not-for-profit
