FAQSmall Business Loan Programs

I am trying to complete an application and I have some questions, may I speak to someone for assistance?

Yes, please contact our office at 559-438-9680 and a staff member will gladly assist you.

Do you provide start-up financing?

Yes, however start-ups are looked at very carefully due to the additional risks they present compared to established businesses.

Do you provide 100% project financing?

No. Generally a minimum of a 20% injection by the borrower is required contingent upon the program.

Do you have someone that can help me with a Business Plan?

We do not help with the preparation of a business plan. However, we can provide a general guidance on what a good business plan should entail. We can also refer you to some of our partner agencies who can help you with your business plan at little or no cost. Some of these agencies include SCORE and SBDC whose links can be found on our website on the Partner’s Page.

Do you provide grants for small businesses?

No, we do not provide grants for small businesses. All of Valley’s products are normally loans with definitive repayment schedules. If you are interested in finding grant opportunities, you can visit http://grants.gov/.

Do you make loans to purchase real estate to establish rental properties?

No. We can make loans for businesses to purchase real estate that will be occupied by the business, but not for passive real estate activities such as rental properties.

My credit history is not that good, can I still apply for a loan?

You can always apply for a loan but your credit is a very important factor for qualifying for a loan. While we do look at credit scores, we primarily review your history of handling credit to determine if you will qualify for a loan.

I filed Bankruptcy can I still qualify for a loan?

You must have been discharged from Bankruptcy at least five years prior to applying for the loan and have at least 2 years of clean credit.

Can you tell me how much I can qualify for?

Generally you should have a loan amount in mind based on what your current financing needs are. Valley will look at how you came up with that number and make sure you a requesting the appropriate amount for your business needs.

I have the majority Interest in the business. Do I need my partner(s) to be involved in obtaining financing?

Anyone with 20% or more ownership in the business must personally guarantee the loan. In some instances where a stockholder owns less than 20%, they may be asked to guarantee the loan, depending on the circumstances.

I want to get financing to buy an existing business, is it required for me to obtain tax or financial information for the business?

Yes. As a potential buyer of a business it is important for you to know how the business is doing to determine how much it is worth and what you are getting into. For a lender, it is also crucial since the cash flow of the business will be expected to repay the loan.

I want to buy an existing business and its assets do I need to go through escrow (eg. bulk sales transfer)?

Yes, typically a business sale goes through an escrow to make sure that the new buyer does not get stuck with unpaid bills, taxes, or liens that should have been taken care of prior to the sale being finalized.

Do I need to get all the proper operating permits, licensing, and legal filings done for my business before I start the loan application process?

No, but you can. Generally you should start the application process early to determine the likelihood that you will qualify for the financing for your business before you spend a lot of time and money on getting the business set-up.