This 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.
Please see Ibank website for more detail: