Loan Guarantee
DESCRIPTION
To promote small business enterprises with special emphasis on assistance to those which will create or retain jobs in California.
USE OF FUNDS
Inventory, accounts receivable, equipment acquisitions, farm production, revolving lines of credit, short and intermediate term loans.
QUALIFICATION
Borrower must have received a commitment from a lender that participates in the guarantee program.
MINIMUM & MAXIMUM AMOUNTS
Maximum guarantee of 80% of loan amount up to $5,000,000 per borrower.
MATURITY
Maximum term of seven years maturity.
INTEREST RATE
Market rate as negotiated by lender and borrower.
COLLATERAL
Available business and personal assets, machinery and equipment, accounts receivable, inventory and real property.
FEES
2.50% of the guaranteed portion of the loan and a $250 documentation fee up to $2,500,000. The fee drops to 2.25% guarantees greater than $2,500,000.
