Loan Programs
Express Capital Loan
CDC partners with Borrego Springs Bank to package, underwrite and monitor these loans, which are typically for start-up businesses and/or businesses owned by women, minorities and veterans or located in low-to moderate-income areas. This is a streamlined program for borrowers with reasonable credit who need up to $50,000.
Eligibility
- Start-up businesses allowed
- Loan proceeds for business acquisition not allowed
- Franchises must be on the SBA approved Franchise Registry www.franchiseregistry.com
- Liquid assets of individual owner cannot exceed $100,000 – does not include IRA and other qualifying retirement accounts
- Tax return not required
Terms and Conditions
- Loan amounts – $5,000 to $50,000
- Term – 7-10 years, fully amortized
- Interest rate – $5,000 to $25,000 - Prime + 4.75%; $26,000 to $50,000 - Prime + 3.75%
Other Loan Features
- Quick turnaround time
- Two part application process:
- Credit screening
- Quick underwriting process
- Express capital loans are permitted after acquisition has been fully completed
- $425 processing fee – deducted from the loan proceeds
- SBA Guaranty fee of 2% of the guaranteed portion (85%) of the loan will be deducted from the loan proceeds
- Loan payments automatically drafted from the business checking account at their established financial institution
- No prepayment penalty – 21-day payoff notification required
- Technical Assistance Included – borrowers receive pre-and post-loan closing management and technical assistance
- Borrower must submit business plan and 24 months (by month) projections after approval, prior to funding
- Utilizes Fair Isaac Credit Score System, which evaluates credit score of the applicant and industry data, including current and recent past due accounts. ollection accounts have a very negative affect on the applicants credit score and loan decision
Application
Express Capital Loan Application [891k pdf]
For assistance, contact:
Susan Lamping
Community Loan Program Coordinator
(619) 243-8639
slamping@cdcloans.com