FAQ

Q: How much money do I have to inject for a business start-up costing $100,000?
A: You need to come up with 30% of the total cost to start your business (not the loan request). If it takes $100,000 to start your business, you will be required to inject $30,000 (30%), and you will request a loan of $70,000.

Q: Where can my capital injection come from?
A: Your capital injection can come from your own savings, monies given to you by a friend or family member that you do not have to repay or home equity. You can not finance your capital requirement through other sources (ie-on credit cards or through another lending source). At least half of your injection must come from your own sources (savings or home equity).

Q: I have some problems on my credit report from the past, how good does my credit have to be?
A: We want to see that you are presently current in all your debt and that any derogatory marks on your credit report from the past are at least a couple of years old, and that you have a reasonable explanation as to what happened. You must be current in your existing debt to be eligible for one of our loans.

Q: If I have a bankruptcy in the past, am I still eligible?
A: Your bankruptcy must be at least 4-6 years old depending on the loan product and there must not be any late pays, charge offs or collection items on your report since the bankruptcy.

Q: If I don’t have any money to put into the start up business, can I still get a loan?
A: Unfortunately not. We want to see that you are willing to risk some of your own money in addition to the money that is being put at risk by the lender.

Q: Can items already purchased be counted as my capital injection?
A: Yes. As long as you have receipts for purchases made and proof of payment, funds already spent in the start up of your business can be considered towards your capital requirement.

Q: If I have no collateral, can I still qualify for a loan?
A: If you are a start up business and have no collateral, you will need to have someone else sign on the loan, guaranteeing repayment. If you have no collateral and no co-signer and are a start up business, it is very difficult to acquire financing through one of our sources. If you are an existing business with positive cash flow, you may be eligible for a loan without collateral or a co-signer.

Q: If I have no experience in the industry, can I still qualify for a loan?
A: If you have identified a manager that is going to work in your business who has at least two years of experience in the industry, you may still be eligible for a loan. If you have no experience and do not have any staff who have experience, you are not eligible for one of our loan products.

Q: Do I need a business plan?
A: If you are a start up business, you will need a business plan. If you are an existing business, you will need to put together a summary of the history and nature of your business. Or if you are expanding your business in some way, you will need to put together an explanation as what your expansion plan is, how this will affect revenue and how you will grow your business.

Q: What documentation will I need when I submit my loan application?
A: You will need all application forms completed, personal and business tax returns for the last three years, financial statements on the business for the last three years, an interim financial statement since your last tax reporting period, and for start-ups, a business plan, projections and assumptions on which the projections are based. If you are a start up business you will not have business tax returns or financial statements.

Q: How long does it take to get funding?
A: Depending on which Community Loan Program you apply for, the time to approval varies, but it generally takes about a month from when you have submitted a complete loan file to get an answer as to whether your loan was approved or not. It takes 1-2 weeks after that to get funded.

Q: If I need help putting together a business plan or need some type of business consulting, where can I go?
A: You can go to any of the below listed organizations for business counseling services at no cost to you.
1) SCORE: (619) 557-7272
2) Small Business Development Centers (SBDC’s)

• Southwestern College in Chula Vista: (619) 482-6391
• Mira Costa College in Oceanside: (760) 795-8740
• Inland Empire: (909) 781-2345
• Santa Ana: (714) 564-5200
• Imperial Valley: (760) 312-9800