BUSINESS LOANS AND RESOURCES 

a public service of:  Cal Feminist Federal Credit Union ~ PO Box 16587 - San Diego, CA 92176 ~ Tel. (619) 298-SAVE (7283) ~ www.feministcu.org ~ info@feministcu.org

1. Your usual source for a business loan is a commercial bank: banks have the staff and expertise necessary to evaluate the chances of success for a particular business. They have, too, the ability to afford the risk involved.

When you apply, they will expect you to have a written business plan that includes enough money to live on while your business is building up. The bank may be concerned if you ask for too little money!

Lenders consider business loans to be highly risky. Their lending rates reflect this. You’ll qualify for a lower rate if you can offer collateral or security for the loan, such as a trust deed on your home, if you own one, or the title to a motor vehicle.

We hope that the information in this section will help you find an alternative lender and/or the resources to help you prepare a solid business plan. With such a plan, you’ll have a better chance of approval when you do apply for a business loan.

a. Small business Administration (SBA): look for them in the white pages of your phone book under "United States Government". The SBA provides counseling, workshops, publications, and recorded info on various aspects of running a business. they also back loans for lenders that participate in their program.

When you call, request a "List of Participating Lenders". But don’t overlook an opportunity to learn as much as you can. Ask them, for instance, how to package a presentation when you apply for a business loan from a bank. Learn, too, about their "Office of Women’s Business Ownership".

· In San Diego: Recorded Info, 24 hours a day Tel. (619) 557-7250

· Outside San Diego: SBA Answer Desk: (800) 827-5722 or www.sba.gov

b. Service Corps of Retired Executives (SCORE): see white pages of phone book under "United States Government". Developed by the SBA as a means of utilizing the expertise of retired business executives, managers and professionals. They provide free management and counseling. In San Diego: (619) 557-7272.  www.score-sandiego.org Outside of San Diego, see 2, a, above.

c. Advocate for Small Business (State of California):  "we inform small businesses about opportunities provided by state agencies."  These opportunities include state contracts; possible guarantees for small business loans; the options of signing up for an electronic newsletter with resources, opportunities and events. 

d. Small Business Development Center (SBDC):   in San Diego, the Chamber of Commerce sponsors--and the SBA and State of California fund--this organization.  The Center provides free business counseling services and monthly workshops on topics ranging from business plan development to government contracting.  SBDC publishes a Small Business Resources Guide.  They also have a resource library with books, videos, and audiotapes:

    Tel. (619) 482-6391

    www.sbditc.or

         e. Disabled Business Persons Association: in San Diego:

 Tel. (619) 594-8805. e-mail:  info@disabledbusiness.com

        f. Accion: according to their brochure:

· They "have micro-lending programs in 14 countries throughout Latin America and in six cities in the USA"

· They provide loans "ranging from $300 up to $25,000…the average loan being approximately $3,000."

· "We’re committed to serving a wide range of clients including underserved, lower income, and ethnically diverse microentrepreneurs."

· Loans "with little or no collateral requirements" for what they deem to be "microbusinesses" such as "sewing clothes at home or running a corner grocery store…or child-care providers."

Accion San Diego:  

Tel. (619) 685-1380 

Fax. (619) 685-1470

www.accionsandiego.org

e-mail:  info@accionsandiego.org

f. Count-Me-In for Women’s Economic Independence: from their Web site on 6/18/03:  they provide "access to business loans, consultation and education...the first online microlender...uses a unique women friendly credit scoring system to make loans of $500-$10,000 available to women across the United States who have nowhere to turn for that all-important first business loans. The[y] provide access to networks that expand contacts, markets, skills, and confidence."

    Count Me In, Inc.

    22 W. 26th St., Ste. 9H

    New York NY 10010

    Web site:  www.count-me-in.org

    e-mail: info@count-me-in.org

    Tel. (212) 691-6380

 

g. Credit unions: some credit unions are beginning to make small business loans.  But they are more likely to make loans to individuals--who remain responsible for the debt even if the business does not endure--than to businesses. 

    Most credit unions already makes loans to business owners and/or self-employed individuals for the purchase of such things as a home, car, or appliance for their personal use.  to find out which credit unions in your area do make business loans, contact the California & Nevada Credit Union League’s Credit Union Match Program: (

 

    Tel. 800) 472-1702

    www.howtojoinacu.org

h. Share what you learn: as you lookup Web sites and make calls, please let us know of:

· new contact info on organizations listed here

· other non-profit, not-for-profit or government-funded organizations we might want to list the next time we revise this form.

3. What can Cal Feminist do for you? If you join our credit union:

a. Loan: while we do not ordinarily make business loans, there is one exception to the rule: if you have an existing business—or you have a good business plan—but you:

· don’t qualify for loans from other lenders or

· you don’t have enough collateral or

· you haven’t the time to want to wade through all of the paperwork,

this unusual loan might work for you:.

Perhaps you know someone who would consider investing in your business, but they don’t want to:

· make you a personal loan

· have to compute the amount of interest to deduct from each payment you make

· provide you with a record of all the interest you pay at the end of each year

· keep track of when your payments are due

· remind you to pay if you forget

Instead of lending money to you, your investor can open a savings account at Cal Feminist.  They use their account balance as the collateral or security for your loan. You do not need to:

· submit your business plan to us

· have your credit checked

· verify your current income

For more info, see below. For rates, click on Loans and scroll down to "Savings-Secured".  

b. establish/re-establish credit help:  if you decide to join our credit union, you may make use of our extensive, free education and one-on-one counseling. Free booklets and worksheets available to our members include, "How to Establish Credit" and "Planning Your Purchases: When to buy on Credit—and When Not to".

    If a lender denies your loan because of a poor credit history, you may apply for three different kinds of Cal Feminist loans to help you prove that you can make payments on-time, consistently, for at least 12--but preferably 24-- months.  What's unusual about these loans?  You need not verify your income; we won't check your credit.  In most cases, these loans are approved automatically.  Ask for additional details about

• Savings-Secured Type I:  you use your Cal Feminist savings account as collateral for the loan.  For every $100 you owe on the loan, you keep at least $106 in your account.  while you pay interest on the loan, your savings continue to earn dividends.  
• Savings-Secured Type II: someone you know who lives in DC or one of the 50 states use their Cal Feminist savings account as collateral for your loan.  They do not co-sign.  The loan will appear on your credit reports only, not on their's.  They can withdraw from their savings as you reduce the balance owing on the loan, so long as they leave in their account $106 for every $100 you still owe.  Their savings earn dividends while you pay on the loan.  
• Credit-Builder: like putting a savings account on lay-away. You take out a loan but you don't receive a check.  Instead, we add the money your borrow to your Cal Feminist savings.  You have to leave the amount you borrow in your savings until you pay the loan in full.  Example:  you begin with $50 in Savings.  You borrow $1,000.  We add $1,000 to your savings. Now you have $1,050 in savings and you owe $1,000 on the loan.  After having paid 12 monthly payments of approximately $87 per month, you'll owe $0 on your loan and have approximately $1,070 in your savings.  You may either withdraw the money from your savings or leave them in and take out a Savings-Secured Type I loan.

a. lenders are hounding you about past-due payments: contact the non-profit Consumer Credit Counseling Services (CCCS). They do not lend money. They do offer free budget counseling, with a plan to help you free yourself of debt.

For a small fee they can set you up on a plan. They contact your creditors and arrange to have your monthly payments reduced. You then send CCCS one check a month. CCCS mails checks out to your creditors. The harassment stops. You do not need to file bankruptcy. 

    San Diego County: (888) 298-CCCS (2227) or www.cccssdic.org

    Nationwide: (800) 388-2227

b. if you are using credit compulsively:

In San Diego County: Debtors Anonymous: (619) 525-3065

Outside of San Diego County: they recommend a book, available in the library: How to Stay Out of Debt and Live Prosperously