All About Business Loans
One of the major barriers for today’s small business is access to capital. Without adequate financing, many small businesses are prevented from purchasing equipment, inventory, or real estate. As a small business, there are various sources of financing to consider: savings, friends & relatives, banks, credit unions, or venture capital firms. When pursuing financing from banks; lenders are primarily concerned with the ability to repay the loan and are evaluated by the following criteria: credit, collateral, cash flow, character, and market/industry conditions---the important 5 C’s. Whatever your financial needs may be, VEDC can help refer/advise/package the best loan program to meet your needs. Contact one of our loan officers to go over which loan program better suits your business needs at 818-552-3321 or 818-907-9922. (servicios en español)

How it works
Often times, a small business does not present the optimal mix of criteria to qualify for a traditional bank loan. To address this common occurrence, the federal government, through the U.S. SBA, has established numerous loan guaranty programs. These programs provide a key source of financing for viable small businesses that have true potential. SBA guaranty loans are made by private lenders and are guaranteed up to 85% of the loan value. SBA loans are made available through intermediary organizations and are financed by commercial banks.

VEDC’s team of loan consultants provides lending guidance and loan packaging services at little or no cost. Loan consultants will meet with a business owner, analyze their ability to qualify for a business loan, and help determine what loan program is most suitable. If appropriate, the consultant then will assist the business in meeting loan requirements and packaging the loan. The program provides outreach lending assistance to businesses all over Los Angeles County. Los Angeles Business Development Corporation, VEDC's state licensed lender currently has the following loans available.

Revolving Loan Fund [$25,000 - $700,000]

click pic to enlargeEstablished in 1995 with a $6,000,000 capital base provided by the U.S. Department of Commerce, the Economic Development Administration's Revolving Loan Fund focuses on businesses located in the County of Los Angeles that have been declined credit by commercial banks and are looking for funds to help grow, save and create employment opportunities in the region. The loan amount ranges from $25,000 to $700,000 and is used for debt restructure, business acquisition, fixed asset financing and working capital.



SBA Microloan Program [$1,000 - $35,000]
The Los Angeles Business Development Corporation (LABDC), in 1998, implemented a Small Business Administration Microloan Program in Los Angeles, Ventura and Orange Counties. The SBA Microloan Program has a capital base of $3 million, which provides financing to existing and start-up businesses. Loans originate from $1,000 to $35,000 for 3-5 year term at market rate with no points.

Please visit www.microloan.org for more information.

Pacoima Microloan / Wells Fargo Fund [$1,000 - $15,000]
In partnership with Wells Fargo Bank, this program offers funding to businesses located in the Pacoima region.  Loan amount ranges between $1,000 and $15,000 with terms up to 5 years.

Women's Business Microloan [$1,000 - $25,000]
Established in June of 2007, in partnership with GE Money Bank, this program provides funding to Women-owned businesses in the Los Angeles Metro region.  Loan amount ranges from $1,000 to $25,000 with terms up to 5 years.

California State Guarantee Program [$25,000 - $1,000,000]
The San Fernando Valley Financial Development Corporation (SFV-FDC) administers the California Loan Guarantee Program. The guarantees issued on behalf of the State by the SFV-FDC, provide a lender with the necessary security to approve a loan or line of credit for business expenses. The Guarantee program was designed to induce local banks to provide financing to borrowers who cannot qualify for conventional loans. For more information on this program, visit www.sfvfdc.org.

IRP Revolving Loan [$25,000 - $150,000]

click pic to enlargeIn partnership with the United States Department of Agriculture, these funds can be used towards community development projects, new businesses, expansion, creation of employment opportunities, the purchase of equipment, debt refinancing, or business and industrial acquisitions in rural areas or in cities with population of less than 25,000. Interest rate is up to prime plus 3%. Fees are up to a 3% origination fee; term is 3-5 year. Collateral is required as appropriate to secure loans to the maximum extent. Personal guarantees are all owners with at least a 10% ownership.


SBA 504 [$125,000 - $5,000,000]
The 504 Loan Program provides financing to existing businesses in Los Angeles, Ventura, & Santa Barbara Counties. We originate loans from $125,000 - $5,000,000 for up to 10 or 20 years at fixed pricing. Loan can be used towards purchase, construction or expansion of an owner occupied commercial real estate (CRE) & the purchase of equipment with a useable life in excess of 10 years. Can go as low as 10% down.

SBA Bank of America Express [up to $100,000]

click pic to enlarge3-5 amortization, one page application and 3-week turnaround.














SBA Community Express
- Wells Fargo Bank [$100,000 - $250,000]
- Innovative Bank [$5,000 - $15,000]
This loan provides flexibility since they can be structured as lines of credit or term loans. Some banking partners may limit the loan amount to $10,000 for businesses that have been operational for less than two years. Interest rates range from 3.25%-4.99% over the prime rate with loan terms of up to 7 years. Loan proceeds may be used for the purchase of machinery, equipment or inventory, and for working capital. Qualifying businesses are at least 51% minority, veteran or woman owned and operated. No bankruptcy history for the last 3 years, no criminal history and minimal paperwork and 3-week turnaround.

SBA 7(A) Loan [$35,000 - $2,000,000]
This program caters to both start-up and existing businesses and was established to provide financing to borrowers who cannot qualify for conventional loans. Loan amounts range from $35,000 to $2,000,000 with guarantees of up to $1 million; up to 25 year amortization.

New & Used Auto Loans
Whether it’s a new or used car, the Pacoima Development Federal Credit Union can help you with your financing. PDFCU offers low rates on new and used cars. When you're ready to buy, your pre-approved auto loan will give you the negotiating power of a cash buyer - and save you time. For more information, visit www.PacoimaDFCU.org, or call (818) 899-8506.

Debt Advisory Services
VEDC expanded its services in 2000 to include in-depth consulting assistance for new and existing businesses that need to restructure debt, stabilize operations or raise new capital. Whether the need is to restructure company debt or to fuel growth, VEDC can advise on where to obtain financing and how to structure the request to qualify for funding.