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Micro Credit Access
Southern California Business Development Fund
504 ACE
Small Business Administration 504 Loan
Section 108 Loan Program
Tax Exempt Bonds

Micro Credit Access

Micro Credit AccessThe 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 costs.

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) growth trend.

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 guarantees.