State Small Business Credit Initiative (SSBCI) Loan Guarantee Program

Offers protection to the lender against potential losses incurred from new or existing lending relationships. The loan guarantee is backed by a trust fund set up by the State of California funded with federal dollars. This loan guarantee can be utilized by commercial banks, Certified Development Financial Institutions (CDFI’s) or credit unions. Normally, the borrower works directly with the lender; the lender then works directly with Valley Small Business Development Corporation to secure the loan guarantee.

Loan Purpose

  • Purchase, construct or improve real estate or facilities
  • Purchase and installation of equipment
  • Permanent working capital
  • Purchase of inventory
  • Refinance pre-existing debt with a new lender with the extension of additional credit

Qualification

  • Good credit history
  • Adequate repayment capability
  • Adequate collateralization

Maximum Limit

  • 80% loan guarantee up to $2,500,000
  • For either term loan or a line of credit

Rates and Terms

  • Set by commercial lender
  • Guarantee up to 7 years
  • Balloon payments are allowed
  • Non-profits are eligible recipients

Guarantee Fees

  • 2 1/2% of guarantee liability
  • $250 documentation fee

Borrower Contribution

  • Contingent upon project