Who qualifies for the Small Business Disaster Relief Loan Guarantee Program?
Small businesses located in California with up to 750 employees that have been negatively impacted by the COVID-19 pandemic.
What are the first steps in obtaining a loan?
To apply for a loan, contact a participating lender in your area. You also can receive help with your application from one of seven IBank partner Financial Development Corporations (FDCs) listed online at the IBank Small Business Finance Center. The FDCs can help connect you to a participating lender, as well as apply for the loan guarantee.
How does a loan guarantee work?
A loan guarantee mitigates the risk assumed by a traditional lending institution. A bank is more willing to provide access to capital if there is a guarantee in place that would repay up to 95% of the loan should there be a default.
What can loan proceeds be used for?
The funds are meant to help small businesses through this challenging time. Loan proceeds can be used for business continuance or to cure “economic injury” as a result of the COVID-19 pandemic.
What are the loan terms?
The loans can be guaranteed up to seven years and cover up to 95% of the loan. The interest rates are negotiated between the lender and the borrower. Qualifications are based on lender criteria.