We’re thrilled to announce that beginning today PCV is offering microloans in amounts of $10,000–$50,000 to help California small businesses add jobs, purchase equipment, expand their inventories, repair machinery, or get through construction.
PCV’s small business loan program started during the Recession, when many major banks stopped offering business loans under $250,000. This capital crunch made things harder for small businesses in underserved areas who were already fighting to stay afloat. 1/3 of entrepreneurs who apply for a bank loan are rejected; 54% among people of color. And women in general are turned down for loans 20% more often than men.
In California, PCV has been filling part of this gap with loans between $50,000 – $200,000 for small businesses that can’t get financing from traditional financial institutions or the Small Business Administration. We listened when more and more of you said that you need small business loans under $50,000, and you’re being turned down by other lenders, banks, and credit unions.
The Federal Reserve’s research also shows 39% of all small business loan requests are below $50K. Traditional financial institutions aren’t meeting that need, so unfortunately more and more small business owners are turning to online lenders with sometimes predatory rates.
As a nonprofit whose mission is to create jobs for working people and support small business owners who’ve had a hard time accessing capital, we had to respond to your need.
About Our New Microloan Program
PCV Small Business Lending helps communities grow by investing in people who build businesses and generate jobs in their neighborhoods. We provide small business loans to entrepreneurs across the state of California, with a focus on underserved borrowers such as women, people of color, and veterans.
- Loans can range from 1-5 years
- Interest rates range from 9% – 13% fixed per year (depending on the loan amount and other credit factors)
- No penalties for early repayment of loans
- All loans are fully amortized
- No hidden fees: One-time 3% – 5% loan fee at closing
- No minimum credit scores for consideration
- Free access to our pool of 400+ expert business advisers
In the Bay Area, our economic boom has outstripped the majority of the country when it comes to creating new jobs — but those gains have gone to investors or highly-educated workers in high-paid fields. The middle class is moving out, and what you’re left with is minority of highly paid people and the low-wage workers that support them.
PCV is laser-focused on small business as a major part of the solution. Small businesses employ half of California’s private sector workers, but far too many of those businesses are unable to access loans from traditional financial institutions because they are too young or too small. With Pacific Community Ventures, you can access the capital you need, from a nonprofit lender you can trust.