small business loans faq

How Our Small Business Loans Work

Pacific Community Ventures’ small business loan program provides debt capital and resources to California businesses who are beyond the startup phase but have trouble qualifying for loans from traditional banks for Small Business Administration lenders.

We’ll provide you and your small business with capital and pro bono expert advice to grow your business. Our goal is to help you get ‘bankable’ while also working toward being able to pay good wages, offer benefits, or provide career opportunities to help workers thrive. Our small business loans also put businesses on a path to grow and scale so they can attract additional capital.

Check out our FAQ below for more information on:

Who’s Eligible For A Small Business Loan?

If you’re a California company that’s been in business for at least 12 months, and you’ve got at least 1 employee (part- or full-time), then we’d love to work with you!

We also specialize in working with small business owners who’ve had a hard time accessing capital, like female entrepreneurs, immigrant entrepreneurs, entrepreneurs of color, and borrowers that may have been turned down for SBA or traditional bank loans.

Our typical clients are small businesses with at least 1 part-time or full-time employee who would like to grow. Businesses must be located in California and have been in operation at least 12 months (sorry, we don’t work with startups at this time).

There are no minimum credit scores for consideration. Your business should be profitable at the time you apply. It’s ideal if your businesses can show at least 6 months of ongoing profitability, but it’s not required. 

What Kinds Of Small Business Loans Are Available?

Pacific Community Ventures offers small business loans and microloans in amounts from $10,000 to a maximum of $200,000.

Some example small business loan purposes include:

  • Working capital
  • Inventory purchase
  • Acquisition and/or repair of machinery and equipment
  • New construction, expansion and/or repair
  • Acquisition of existing business

What Are Your Terms?

Our general terms

  • Loan terms can range from 1-5 years
  • No penalties for early repayment of loans
  • All loans will be fully amortized
  • Automatic withdrawal (ACH) required for all payments

Interest rates:

  • 7% – 13% fixed per year (depending on the loan amount and other credit factors)

Fees:

  • 1% – 5% loan fees at time of closing

Do You Require Collateral?

We require a personal guarantee for anyone who owns 20% or more of the business. We also consider all types of collateral including business and personal assets (may include security or pledge). While we check the credit for anyone who owns 20% or more of the business, we do not have a minimum score, and remain flexible. 

How Does The Process Work?

Step 1: Fill out a Pre-Application. Tell us a few basic things about yourself and your business. After you submit the preapplication, our small business lending team will contact you within 24 hours to schedule an introductory call to discuss your business and the purpose of the loan in greater detail.

 

Step 2: After our phone call, we’ll usually ask for up to two 2 years of financial statements, an income statement and balance sheet, and a simple Personal Financial Statement, as supplied by PCV. Depending on what your using your loan for, we may need to  review some other documents like your lease agreement (if moving locations or expanding), business loan agreements (for any pre-existing liabilities, especially if you’re reconsolidating debt), or additional financial documents (like company debt schedules, or projections. 

 

Step 3: Once we’ve reviewed your documents, we’ll make a decision on your loan. That process usually takes between 1 — 3 business days, during which time we’re in contact with you so there are no surprises. Once your loan is approved, we’ll move to closing and let you know next steps. 

What if I’m Not Approved For A Loan?

Pacific Community Ventures is a nonprofit dedicated to empowering small businesses. If we can’t offer you a small business loan, we’ll either refer you to one of our partner banks, credit unions, or community lenders who can, or we’ll match you with a free business advisor who can guide you on getting your business into a place where we can provide you a loan. With a PCV small business loan, you’re never alone — we’re here to help every step of the way.


Get pre-approved now >