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 enlargeThe Economic Development Administration’s Revolving Loan Fund focuses on existing 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 & 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. VEDC has operated this program since 1995, lending more than $22 million to 78 businesses.


SBA Microloan Program [$1,000 - $35,000]
Since 1998, the LABDC has administered 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. More than 510 loans have been funded, for $6.4 million.  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 to $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 Small Business Guarantee Program [$25,000 - $1,000,000]
Administered through the San Fernando Valley Financial Development Corporation (SFV-FDC), an affiliate of VEDC, this program serves as the regional vehicle for small business loan guarantees provided to commercial banks and various non-profit community economic development lenders. Loan Guarantees of up to 75% of the loan amount may be provided, with the guarantee portion not to exceed $350,000. Guarantees may be used for both term loans and lines of credit; fees may apply depending on loan amount and loan terms. Terms and conditions subject to lender/bank approval. Loan proceeds may be used for most business purposes including, but not limited to equipment purchase, working capital, business acquisition, etc. Since the corporation was formed by VEDC in 2001 more than 255 loans have been guaranteed, exceeding $51 million in loan capital.  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, loans up to $150,000, can be used towards community development projects, new businesses, expansion, creation of employment opportunities, the purchase of equipment, debt refinancing, or business acquisitions in rural areas or cities with a population of less than 25,000.

SBA 504 Loan Program [$125,000 - $5,000,000]
Administered through the San Fernando Valley Small Business Development Corporation, a Certified Development Company "CDC" (SFV-SBDC, a subsidiary of the SFV-FDC), an affiliate of the VEDC, this program provides financing to existing businesses throughout the state of California. The SBA 504 Loan Program can provide fixed rate financing for projects of up to $5MM for most businesses or up to $10MM for manufacturers. Loan proceeds must be used towards the purchase, expansion, or construction of any owner-occupied commercial real estate or towards the purchase of equipment with a usable life in excess of 10 years. The program features fixed interest rates, low down payment requirement of at least 10%, and loan terms of either 10 or 20 years fully amortized. Program requires participation of lender to finance up to 50% of the project, while the CDC finances the remaining 40% (assuming typical 50/40/10 scenario).

SBA Community Express [amount varies]

click pic to enlargeVEDC is partnered with various local banks to provide unsecured financing options to small business owners in the form of Community Express Loans. These loans provide flexibility since they can be structured as lines of credit or term loans. Loan amounts range from $5,000 to $250,000. Some banking partners may limit the loan amount to $25,000 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.

SBA 7(A) Loan Program [$35,000 - $2,000,000]
The 7(A) loan 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. Included under the 7(A) banner are the Wells Fargo and Innovative Bank Community Express Loan programs and the Bank of America Express Loan program.

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 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.