Small biz finance handout

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Small biz finance handout

  1. 1. Small Business Finance • Jl sman Business rwancc • CDCs are financial intennediaries certified by the SBA to administer SBA 504 loans (commercial real estate loans). • There are 266 CDCs in the USA. • CDC Small Business Finance has been in operation since 1978 and is the nations largest CDC. We have a staff of over 60 professionals and manage a loan portfolio of over $1.7 billion, with over 3,500 loans. • CDC administers a varieties of loan programs & . .. to meet entrepreneurs needs. _ Small Business rlllacce • ••CDC Small Business Finance Susan Lam in 619 243-8639
  2. 2. .•. ·• . ·EvaluatingaBusiness: ..:.·.>· ..~.·.··.(f6r:·~;·:fuiiy,.~~&~t~?itt~h,r~;ijti~~t)·;· ,.. .. - Credit of all principal business owners - Capacity to repay loan - Collateral (must pledge what is available) - Capital (30% injection required by borrower) - Conditions (Economic, Industry) - Experience in the Industry (2 years) - Other sources of income - Business Plan, Projections, and assumptions upon which the projections are based. "­ Small Busincsa Finance • • • • 7(a) loans are offered by most lenders • The borrower can go directly to a bank and apply for a 7(a) loan or they can utilize CDCs services to assist in this process • CDCs role: packaging and finding the best lender • Benefits to the borrower - CDC contacts and industry knowledge - Saves time - Minimizes credit inquiries •CDC Small Business Finance. Susan Lamping (619) 243-8639, 2
  3. 3. B i.·.;·.• f. .·· ··.·an .er.S".•·.···. ..• . ..•·•• .•.·. . .•. ..• i..•,.· · · ·. ,· ..•.•.·.•. ::l.k·.·.···.·····.·•. ·0·.··.· ..··.. . •.·.· .·.•·.·.··.·.D··.··.· ··.·.·.··.·.··L•. . i! . :•.:..•. .;.:.: ·. .D·.·.• . ·. ·. :.•. . ..Y.....•.··,·.,:···oan.r-.IO; ·.·.·.·.·.n.··.··.···.·.··.· .•. · • .... • ;·.·. • Loans available up to $200,000 for businesses that do not qualify for SBA financing, target businesses located in low to moderate income areas. • To determine LMI eligibility go to: www.ffiec.gov/Geocode/default.aspx and input address. • CDC Small Business Finance is the direct lender under this program. Loan funds are from member banks. • Rate starting at Prime+ 3% (risk based), 10 yr amortization, 5 yr call. ~ • Open to for-profit and non-profit organizations • in LMI areas. SmallBu.smesaFinance • • • • CDC Small Business Finance partners with Borrego Springs Bank to offer working capital loans up to $50,000 (via a term loan). • For clients with credit scores above 650 and who meet other bank criteria, $25,000 is available, and for clients with stronger credit (720+) and who meet other bank criteria, up to $50,000 is available • Three page application • Two step approval process- 1) credit check, 2) quick underwriting • 10% capital injection required to fund businesses in operation less than 24 months • Borrower receives technical assistance post funding • Rate is Prime + 3.75% for loans between $26K and $50K, P + 4.75% for loans up to $25K, term is 7 years • • • • • /CDC Small Business Finance, Susan Lamping (619) 243-8639 3
  4. 4. • • • The SBA lends an intennediary money and the intennediary re-Iends it out to the borrower up to $35,000 • CDC Small Business Finance is an intennediary acting as a direct lender under this program • Demonstrate reasonable personal credit • Provide secondary source ofrepaymentlcollateral • Interest rate of Prime +3.5% to Prime + 4.75% (fixed) • Tenns from 3-5 years • Will Finance start up businesses with two years experience, 25% capital injection, collateral and reasonable credit. • Borrower receives technical assistance post funding. " Small Business FUlaIlCC • • • • • Email Susan Lamping if you know which product you want to apply for and she will send you the loan package. slamping@cdcloans.com • Or call into one of our weekly conference calls for more detailed information and to get all your questions answered. Call in information is as follows: - Tuesdays and Fridays at 9 a.m. - CalI1-866-699-3239 - Pass code is 20002319 • Return completed loan application and requested items to CDC Small Business Finance for processing. • CDC will contact you within 48 hours to further discuss your request. • •CDC Small Business Finance, Susan Lamping (619) 243-8639 4
  5. 5. • All Businesses - All Loan Application Documents Description ofthe use ofloan proceeds - Personal Tax Returns for the last three years on all principal borrowers - Resume of all principals in the business - Proof of other income on principal borrowers • Start up Businesses - Business Plan and Projections • Existing Businesses - Business Tax Returns for the last three years _ - Business Financial Slalements (PiL and balance sheet) • for the last three years Small SuSllll:S$ FlllIUlCe • Contact CDC Small Business Finance to discuss your financing needs and determine which loan product is best for you. Susan Lamping Community Loan Program Coordinator Main line: (619) 291-3594 ext 8639 Direct line: (619) 243-8639 sIamping@cdcloans.com CDC Small Business Finance 2448 Historic Decatur Road, Suite #200 Jl San Diego, CA 92106 Small BU5IIleSS FinanceCDC Small Business Finance, Susan Lamping (619) 243-8639 5

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