New California Small Business Loan Match Backed by the State of California
May 13, 2024
Delaney Sexton
Contributing Editor
New California Small Business Loan Match Backed by the State of California
California Small Business Loan Match is a new no-cost lender-match tool that eases the process of finding trusted loans for California entrepreneurs. The tool provided by IBank’s Small Business Finance Center gathers dozens of lenders, most of which are CDFIs, on a single platform for a one-stop experience. All participating lenders are pre-vetted and enrolled in IBank’s Loan Guarantee Program, which specializes in bridging the gap between responsible lenders and small businesses.
These are the most commonly asked questions and the participating lenders:
Will completing the pre-application affect my credit score?
There are no credit check runs as part of the pre-application. They only ask you self-report your approximate credit score at this stage.
Who’s eligible to apply?
Businesses at all levels of operation are eligible to apply. In order to pre-apply you must:
- Operate in the state of California
- Have between 1-750 employees
- Be a Business Entity (Sole Proprietor, LLC, Cooperative, Corporation, Partnership, S-Corporation, or Not-For-Profit)
- Be listed as an eligible industry according to the 2022 NAICS codes
What happens after I submit my pre-application?
If you meet the initial eligibility requirements, you’ll immediately be matched with one or more lenders:
- You will see specific details for each lender and their loan products (including requirements, rates, schedule, and more) before selecting your top choice to proceed with.
- Your selected lender will contact you within three business days to request additional documentation and determine whether your business is ready for a loan. You will also receive your chosen lender’s contact information if you need to follow up directly.
- If your chosen lender determines that your business is loan-ready, they’ll establish the loan terms that are best suited to your business.
If no loan match is made after you pre-apply with California Small Business Loan Match, you’ll be directed to a website to find technical assistance that can help get you ready for a loan.
What happens if I don’t get matched with a lender?
Even if you don’t get matched with a lender, Loan Match will put you in touch with technical assistance teams that can help you get ready for a loan. Then you can complete the pre-application again. They consistently add new lenders and loan products, so they encourage you to keep applying until you find your match.
Can I complete the pre-application for a loan match more than once?
Yes. They consistently add new lenders and loan products, so they encourage you to keep applying until you find your match.
What is the typical loan size requested and how much am I allowed to apply for?
Loans are typically requested for $150,000 or less, but California Small Business Loan Match has a maximum loan amount of $20 million. The final loan amount will be determined after you select a lender to move forward with.
How can I use my loan funding?
- Loan proceeds must be used to operate a business in California
- Eligible loan uses include, but are not limited to, start-up costs, working capital, inventory, construction, equipment purchases, agriculture, lines of credit, and business expansion.
Does IBank accept loan applications?
Although the website is operated by IBank, IBank is not a small business lender. Rather, all small business borrowers should use this form to match with a lender.
Who is issuing the loans?
Loans are issued by dozens of lenders featured on this platform. The lenders that connect with you have been pre-vetted by IBank and are currently enrolled in IBank’s Loan Guarantee Program.
What is IBank’s Loan Guarantee Program?
IBank’s Small Business Finance Center features a Loan Guarantee Program designed to assist responsible, mission-driven lenders in providing loans to small businesses that may otherwise struggle to access them.
What are the financing terms for these loans and how is the interest rate decided?
Each lender sets their own loan terms and interest rates. Small businesses can expect interest rates similar to those of national banks, and better than those of online lenders. Complete the brief pre-application to see all of the loans you match with, and read about the specific terms and rates of each before choosing which is the best match for you.
Participating Lenders Include:
- 3CORE, INC.
- Accessity
- Access Plus Capital
- Arcata Economic Development Corporation
- Business Consortium Fund, Inc.
- California Capital Financial Development Corporation
- California Coastal Rural Development Corporation
- CDC Small Business Finance
- Clearinghouse CDFI
- DreamSpring
- Lendistry
- LENDonate
- Main Street Launch
- National Asian American Coalition
- NCRC Community Development Fund, Inc.
- PACE
- PACE Finance Corporation
- PCR Business Finance
- Pacific Community Ventures
- Working Solutions CDFI