Micro Credit Access
The Micro Credit Access Program (MCAP) has been established to
increase the flow of lending into underserved neighborhoods. A
major goal of the fund is to increase lending to small businesses
in targeted neighborhoods to spur economic activity, create jobs,
and reduce blight.
Use of Funds: Funds should be used to finance working capital,
new equipment, debt restructuring, technology investment, renovation,
related costs of fixtures and equipment, and other project related
Eligibility Criteria: The business must meet
the following minimum requirements: (1) have at least one year
positive operating history (2) must also exhibit good credit
(3) show evidence of positive operating income or the ability to
service debt (4) demonstrate management expertise commensurate
with the size and scope of the business and its market and (5)
Target Area: Los Angeles County.
Loan amounts: The funding limits are $5,000 to $75,000.
Fees: A $100 application fee is due upon submission of the application.
Loan fees are approximately 2%-3% of the loan amount and may require
CalCap guaranty fee.
Rate: The interest rate shall range from a minimum
of four percentage points (4.0%) to a maximum of six percentage
points (6.0%) over cost of funds. Historically, the cost of funds
has been based on the prevailing prime rate.
Terms: The term of the loan is determined on a case-by-case basis.
However, the maximum term shall not exceed the economic life of
the asset, usually not exceeding three (3) years.
Collateral: Collateral may be, but is not limited
to accounts receivable, real estate, equipment liens, and personal