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Who We Serve

Our customers are California real estate investors, landlords, brokers and property owners who need cash quickly.
When the bank says no – we fund the deal!

What We Offer

We finance purchase, refinance, cash-out refinance and construction loans on investment
properties. We also provide second mortgages. Our customers use our private loans to purchase, fix and flip, or hold properties, as well as to get cash out on their investments. Short and long-term financing are available. California’s trusted hard money lending.

SBA

In addition to meeting the numerical standards for small, your business must:

About SBA

Since 1953, the SBA has worked to ignite change and spark action so small businesses can confidently start, grow, expand, or recover.

To be eligible for government contracts reserved for small businesses, your business must meet size requirements set by the SBA. These size standards define the maximum size that a business — and its affiliates — can be to qualify as a small business for a particular contract.

The SBA assigns a size standard to each NAICS code. Most manufacturing companies with 500 employees or fewer, and most non-manufacturing businesses with average annual receipts under $7.5 million, will qualify as a small business.

However, there are exceptions by industry. You can view these in Title 13 Part 121.201 of the Code of Federal Regulations (CFR) or in the SBA’s table of small business size standards.

To determine if your business qualifies as “small” for government contracting purposes, use the SBA’s Size Standards Tool.

An SBA 504 loan is commercial real estate financing for owner-occupied properties. … On the other hand, SBA 7a loans can be used to buy a business or obtain working capital. The maximum loan for an SBA 7a loan amount is $5 million. A 504 loan’s interest rate is fixed, and no outside collateral is required.

Types of 7(a) loans

The 7(a) loan program is the SBA’s primary program for providing financial assistance to small businesses. The terms and conditions, like the guaranty percentage and loan amount, may vary by the type of loan.

Standard 7(a)

7(a) Small Loan

 

International Trade

International Trade loans provide long-term financing to businesses that are expanding because of growing export sales, or that have been adversely affected by imports and need to modernize to meet foreign competition.

Businesses can use International Trade loans for fixed assets for construction, building, real estate equipment, and for working capital for export transactions.

To expedite your loan application, start with a look at the list of SBA-approved lenders here. For the fastest results, be sure to have all of the necessary documentation on hand before you apply.

1. SBA 7(a) Loans

The most common loan available through the SBA is a 7(a) loan which provides $30,000 to $5 million to small business owners. Qualified companies can use the funds to fund startup costs, purchase equipment, buy new land, repair existing assets, expand an existing business, acquire a new business, refinance debt, purchase inventory and
supplies, and more.

To qualify for financing, business owners need to have good credit and good business history. In most cases, borrowers will have to put up collateral in order to secure financing.

Generally speaking, repayment terms do not exceed 10 years for most loans and 25 years for real estate loans. Interest rates can fall anywhere between 5–10 percent.

2. SBA 504 Loans

Small businesses that need long-term loans for fixed asset acquisitions—like buying property, buildings, or heavy equipment—can find the funding they need through the SBA 504 Loan program.

If approved, they can qualify for up to $5 million in financing. In most instances, owners are required to guarantee at least 20 percent of the loan.

“These loans are made available through Certified Development Companies (CDCs), which are the SBA’s  ommunity-based partners,” Manger explains. “The advantage of this program is that it provides terms of 10 years, 20 years, and 25 years, which helps free up cash flow for small businesses.”

To qualify for funding, businesses can not be worth more than $15 million and they must have an average net income of $5 million or less after taxes over the two previous years, according to the SBA. Nonprofits and businesses engaged in passive or speculative activities can’t get 504 loans.

SBA 504 Loans have fixed rates attached to them. You can use them in a variety of ways, including:

3. SBA 8(a) Business Development Loans

Each year, the government aims to give out at least 5 percent of all federal contracting dollars to disadvantaged small business owners. One of the mechanisms they use to achieve that goal is the SBA’s 8(a) Business Development program.

Businesses approved for the program can earn sole-source government contracts of up to $4 million for goods and services and $6.5 million for manufacturing.

To qualify for 8(a) financing, small businesses must be at least 51 percent owned by a U.S. citizen entrepreneur who is socially or economically disadvantaged. Owners must have less than $4 million in assets and a personal net worth of $250,000 or less; their average adjusted gross income over the previous three years needs to be $250,000 or less, too. Owners must also manage day-to-day operations and their business needs to have a track record of successful
performance.

To find out whether you’re eligible for an 8(a) Business Development loan, click here to visit the SBA’s “Am I Eligible?” page.

4. SBA Micro loans

The SBA micro loan program—which was created to help minority, veteran, women, and low-income entrepreneurs—awards qualified businesses with anywhere from $500 to $50,000. Borrowers have to sign a personal guarantee and may have to put up collateral to secure financing.

“The SBA’s Micro loan program is designed to provide access to capital to traditionally underserved communities through mission-oriented not-for-profit lenders,” Manger says. “SBA regulators place a limit on the interest rates and fees that can be charged.”

In 2017, the SBA approved nearly 5,000 micro loans totaling almost $70 million; the average loan was $13,884 and carried a 7.5 percent interest rate. Repayment terms for micro loans can’t exceed 10 years.

According to Manger, 8 percent of micro loan borrowers return to the SBA when seeking larger amounts of capital.

5. SBA Community Advantage Loans

In 2011, the SBA launched its Community Advantage Loans program, which is designed to support businesses that operate in underserved communities.

Under the program, up to $250,000 is available to startups and established companies that wish to expand. Funds are relatively flexible and you can use them to cover working capital costs, buy inventory, acquire assets, and more.

Qualified businesses generally have between seven and 10 years to repay the loan, plus interest, which usually hovers somewhere between 7 percent and 9 percent.

6. SBA CAPLines

The SBA offers working capital loans to businesses that need to solve short-term cash flow problems or meet seasonal financing obligations.

The loans—which can reach as high as $5 million with a maximum maturity of 10 years—are perhaps best for businesses that need access to credit lines to ensure they’re able to meet their recurring operating costs and absorb unforeseen expenses.

“SBA CAPLines are a revolving asset-based line of credit,” Manger says. “Small businesses that buy and sell inventory or need to fund contracts would benefit from this type of financing.”

Today, there are four CAPLine programs:

Working Capital CAPLine funds. You can use these funds to cover short-term working capital needs. You cannot use these funds to pay taxes.

Contract CAPLine funds. Contractors typically use these to finance specific contracts—including general and administrative expenses. You cannot use these funds to buy assets, pay taxes, finance debt, or as working capital loans.

Seasonal CAPLine funds. If your business needs to pay for inventory or offset high receivables during the busiest times of the year (for example, a house painting business), look in to Seasonal CAPLine funds. In some cases, you may also use the funds to absorb increased labor expenses that are seasonal.

Builder’s CAPLine funds. You can use these to finance construction and renovation projects. Approved expenses include labor, supplies, materials, equipment, direct fees, landscaping, and utility connections, among other things.

While the cost of these loans will vary based on your specific financial situation, the lender you partner with, and how much money you take out, generally speaking, you can expect to pay somewhere between 7.25 percent and 9.75 percent in interest.

Since CAPLines are lines of credit, you only have to pay interest on the money you spend—not the entire credit line.

7. SBA Export Loans

The SBA also offers financing for companies that need working capital advances on export orders, receivables or letters of credit under its Export Working Capital Program.

Businesses can apply for these loans prior to finalizing an export sale. If approved, you can use the funds to finance supplies, inventory, and the production of export goods, cover foreign accounts receivable, and as working capital during long repayment periods.

Under this program, up to $5 million is available; loan maturities are generally one year or less. To secure financing, you’ll need to provide a personal guarantee from all owners (20 percent or more).

According to Manger, the SBA has a dedicated team of 21 regional export finance managers located across the country that can help with SBA Export Loans. The agency offers three programs designed to help small business exporters:

The Export Working Capital Program provides exporters with up to $5 million. The SBA offers a 90 percent guaranty for short-term loans and lines of credit for export working capital.

The Export Express Loans Program gives exporters up to $500,000 in short-term loans and lines of credit for export purposes. These loans are fast and flexible, as the SBA delegates authority to participating lenders.

The International Trade Loan Program provides exporters with up to $5 million in long-term loans for facilities, equipment, and permanent working capital that will enhance export ability. Borrowers can also refinance existing debt under this program.

If you’re unsure about which program is best for you, talk to your lender or a trusted financial advisor.

8. SBA Disaster Loans

The SBA offers loans to businesses that have suffered from natural disasters. Typically, the SBA makes these comparatively low-cost loans available to replace or repair damaged property and offset economic losses in the wake of disasters.

If a natural disaster affects your business, you may be entitled to up to $2 million in relief to repair real estate, equipment, inventory and other fixtures. Loans can be issued of up to 20 percent more than the total loss if the funds are used to protect property against similar damages in the future.

Up to $2 million may also be available to businesses that lose revenue and are unable to meet financial obligations they would have otherwise been able to pay if the natural disaster did not occur.

In the event of a disaster, the SBA assesses damages to determine whether businesses are eligible for compensation under the Disaster Loans program. Interest rates won’t exceed 4 percent for businesses that don’t have credit elsewhere, or 8 percent for businesses that do. Repayment terms can extend to 30 years, depending on the finances of the business.

How Do SBA Loans Work? What’s the Process?

Before you apply for a loan from the SBA, it’s worth getting familiar with the loan application process so you know what to expect moving forward.

First things first: The SBA itself doesn’t actually lend you the money. What they do is guarantee a business loan from a lender, like a bank. This gives additional assurance and encourages banks to finance businesses they otherwise might not approve for a loan.

To begin the loan application process, you need to establish a dialogue with an SBA-approved lender either directly or through a broker. The right lender will be able to walk you through a number of different loan options and recommend the financial vehicle that makes the most sense for your unique situation. You’ll have to submit a pile
of documentation and financial information—your credit score, personal and business financial statements, several years’ worth of tax returns, resumes, business plans, authorization for credit and background checks, your completed loan application paperwork, and more—to determine your eligibility.

Over the next few weeks, the lender will assess your qualifications across five categories: your ability to repay the loan, your business experience, the equity you’ve invested in your company, how much debt you have and how likely you are to repay it, and whether or not you need to put up collateral to secure financing.

Let’s say the lender approves your application. Hooray! Once the lender has made an affirming decision, the loan closing process begins. Expect to sign a lot of documents once again—like a promise to pay, security documentation, insurance forms, and several SBA documents, and more. This process can last as long as three weeks.

The bottom line? Applying for a traditional SBA loan is often a long, time-consuming process with multiple steps that can take months to wrap up. Several entities are involved in the decision-making process and each step takes time. Unless you can afford to wait several months to secure financing for your small business, you are probably better off looking for financing elsewhere.

How to Apply For an SBA Loan

Now that you’re aware of the different kinds of SBA loans, it’s time to figure out how to increase the chances of approval if you apply, and how to get started with an application if you choose to move forward.

“SBA resource partners offer training courses on how to develop a comprehensive plan,” Manger says. “Business plans need to demonstrate how a small business will use the financing to support the business. It is also imperative that the small business owner can clearly demonstrate their ability to repay the loan. Projections of future cash flow are a necessary component of any business plan.”

If you decide to apply for an SBA loan, the best place to start is right where you are: the internet. Go to the SBA website and fill out the loan application form. To complete your application, you’ll need to provide documents and information verifying your identity, legality of your business, personal and business history, and creditworthiness.

This information includes:

 

For more information or to submit your loan scenario,  contact us:
Phone: 818-296-6101
Email: info@PCFCloans.com

Why Choose Pacific Capital

Our loans are real estate equity base, with no doc and no appraisal. Your information remains private and deals close quickly, without the hassle of a traditional bank loan. Plus, our rates are low and loans can be from 6 months to 30 years.

Address: 5010 N. Parkway Calabasas Suite 201, Calabasas Ca 91302

Disclaimer: Restrictions Apply. Some loans take no longer than 5 days to close. Terms subject to change. This is not a commitment to lend. Pacific Capital Funding Corp is licensed by Cal DRE Lic.: 02039562