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How to Get Small Business Loans in California

small business loans

Small business loans is the process of using capital to help an aspiring or current business owner start up a new small business, purchase an existing small business, or bring money into an existing small business. To be a successful small business loans in California, you need to know where to get the financing you need. While it may not be easy to find a micro-financing loan in the Golden State, Check out the post on this blog to find out what your options are.

Fortunately, with its’ large-small business market, the state of California offers many opportunities and organizations with their business loans and grants. Evaluate your options before settling for a small business loan. Knowing your options will help you find the best small business loans.

Small Business Loans in California

Follow the steps below to obtain a small loans for your business in California. Business loans are a quick and easy way to help expand your small business and start moving toward success. It provides the funding you need, so you can use it for equipment or inventory or whatever else you decide to buy. If you’ve never applied for a business loan, let us walk you through the process to ensure everything is done correctly.

This guide helps you evaluate your options and prepare your small business loans application in easy steps:

1. First, decide why you need it

There are many types of loans that small businesses can receive. By considering why you’re looking for a loan, you’ll find the best kind of loan for your company. Some common scenarios include:

• Buy new equipment
• Borrow a small amount of money
• Establish a business
• Pay for the day-to-day operation
• Borrow money as needed

2. Check Your Eligibility

Before approving small business loans application, there are four things that lenders should consider:

• Credit score
• Collateral and a personal guarantee
• Time in business
• Annual revenue

3. Compare Business Lenders Alternatives

Many small business loans are available to help them grow their businesses. Below is a list listing three types of lenders that you will find on the market.

• Online Lenders
• Traditional Banks
• Microlenders

4. Collect the required documents

Apply for a business loan with the required documents to ensure that you’re prepared. You might need these items:

• Personal and business tax returns
• Business licenses
• Articles of incorporation
• Personal and business bank statements
• Profit and loss statements
• Financial statements
• Business plan
• Building lease

Make sure you understand the document requirements before applying for a loan. Contact the lender before applying if you want to know what documents are needed.

5. Submit Your Application

Submit your small business loan application for approval. You can do this online or in-person depending on which lender you choose to work with.

Lenders will need this information in order to decide if they should accept your loan request:

• Your name
• Business name
• Social Security number (SSN)
• Desired loan amount
• Loan purpose
• Business Tax ID
• Annual revenue

Lenders base their decisions on factors like your credit score. They use several other factors to make the best decisions for borrowers. If you are approved for a loan on our behalf, they send you or your loan administrator an agreement to sign before releasing funds or a line of credit.

California Small Business Loans Regulations

California has some of the most beautiful landscapes in the country. They have transparency-focused regulations and help small businesses get funding.

Senate Bill 1235 passed recently in October of 2018. It was a significant step forward for small businesses needing California business loans, and California is now one of the best states for small businesses.

A law in California helps entrepreneurs understand the specifics of loan agreements before signing them. The bill starts with providing clear guidelines about who must be included in the agreement and what is expected.

This helps business owners learn about their agreement from the beginning, which eliminates the frustration and costly errors.

California Small Business Loan Guarantee Program

Businesses in the state of California can find the best loans by going through the Small Business Loan Guarantee Program. Loans are easier to get through. This state-run program ensures lenders provide lower rates by guaranteeing 80-95% of loans.

California’s state government for Small Businesses operates this program with the help of seven Financial Development Corporations. Nonprofit organizations in California provide small business loans and other resources to help entrepreneurs.

Because they use different FDCs, each lender has different requirements for lending its guaranteed small business loan in California. You can’t apply with more than 750 employees in a small business loan.

You can access funding up to $20 million through this program. In some cases, the guarantee of payment is limited to $2.5 million for projects. Payment terms can be up to 7 years but maybe longer. Nonprofits may also qualify for those terms.

Small Business Administration (SBA) Loans

From government-backed loans to helping small businesses grow, the Small Business Administration helps your company achieve its goals.

Entrepreneurs have numerous opportunities to grow their business with financial solutions as varied as a bank loan. California Bank & Trust offers extended term and lowers down payments through incentives to not just invest but grow your company. We provide entrepreneurs with the funds they need to grow their business, from $100,000 – $10 million.

Small Business Administration (SBA) allow small businesses to get working capital in a variety of ways. They offer competitive SBA loan options, including low-interest rates, flexible terms, and a fast closing timeline. Our competitive SBA loan options offer many benefits for Small Business Owners like:

• With terms up to 25 years, finance up to 90% of your project.
• A full amortization with no balloon payments
• We offer personal assistance from application through closing.
• Close your loans instantly in less than 60 days

Find out about the two different options for SBA loans:

7a SBA Loan

Small Business Administration (SBA) allow small business loans to access working capital in various ways. They can provide working capital to expand the business or buy an owner-occupied building. SBA 7(a) loans are flexible and offer a wide range of uses.

504 SBA Loan

Get financing to acquire equipment or owner-occupied commercial real estate, and this loan comes with low down payments and long-term fixed interest rates.

If your company is looking for financing in California, instead of government grants, seek out a small business loans through an SBA lender. The SBA guarantees the loans, or the Small Business Administration does. Firms looking for a loan with flexible terms should opt for an SBA loan over a government grant, as these loans come backed by the federal government.


California’s economy is the 5th largest globally, with 3.3 million small businesses across the state. These firms need access to small business loans for trading, inventory timing, and expansion/licensing to thrive and remain vital.

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