Community Advantage Loan

Community Advantage is an excellent choice when you have clients who want a loan between $20,000 and $250,000, but are just not up to bank standards. Perhaps it’s due to collateral available, low cash flow, credit history slips, debt leverage ratio that’s too high or a combination of these.  Community Advantage loans enable you to keep your depository relationships and still meet your clients’ needs. CDC is not a depository institution.

The loan can be used to start or expand a business. The SBA guarantees a portion of each loan.  Your clients must show their ability to repay the full loan amount and meet other guidelines to be eligible for a Community Advantage loan.

We can make Community Advantage loans throughout California, Arizona and Nevada.

Your Clients Can Watch This Video To See If They Qualify

Want To Move Forward With Your Client’s Application? Click Here To Have Them Prequalify Today!

Terms and Conditions:

• Maximum Loan Amount: $250,000
• Terms: 7-10 years for working capital, inventory, business acquisitions, tenant improvements, and start-up expenses
• Terms: 25 years for real estate
• Interest Rate: Prime + (2.75% to 6%), variable
• No pre-payment penalties

Eligibility:

• Credit: Must have a reasonable personal credit score and an acceptable explanation for any derogatory marks for principal borrowers.
• Capital Injection: Borrowers must inject 30% of total project costs for start-up businesses, 20% for business acquisition financing.
• Collateral: Borrowers are required to pledge available collateral. Insufficient collateral will not preclude borrower from obtaining financing.
• Secondary sources of repayment:
– Historical business cash flow sufficient to service requested debt
– Cash flow ability based on reasonable projections
– Collateral equal or close to the loan amount
– Outside income source
– Co-signer with reasonable credit and income to repay the loan
• Start-up businesses: Borrowers must inject 30% of total project costs and provide a business plan and financial projections for business.
• Experience: Business owners must have at least 2 years of experience in the industry and show historical earnings sufficient to cover personal living expenses.

Have questions? Contact one of our Community Advantage Loan Experts near you!