Southern California Business Development Fund
Description: The Southern California Business Development
Partners Fund (BDF) is established to spur economic activity and
promote revitalization in the County of Los Angeles. The major goals
of the Fund are increasing the availability of capital to businesses
that create jobs, and improving access to goods and services in low
income communities. Further, the SCBDC seeks to leverage its funds
by co-lending with its investor banks and with municipally supported
economic development projects to satisfy project financing requirements.
Use of Funds: BDF may be used for fixed asset acquisition, equipment/machinery
purchase, and leasehold improvements/rehabilitation. Working capital loans
and refinancing are eligible under certain conditions.
Eligibility Criteria: The business must meet the following
minimum requirements: (1) have at least two years positive operating history
(2) must also exhibit good credit (3) show evidence of sufficient income to
service the debt (4) demonstrate management expertise commensurate with the
size and scope of the business and its market.
Loan Amounts: The funding limits are up to $250,000.
Fees: A $250 application fee is due upon submission of your application. Loan
fees are approximately 2% - 3% of the loan amount.
Rate: The interest rate is set at closing and is at market
rates based upon a risk analysis, collateral and management capacity.
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 5 years.
Collateral: Collateral may be, but is not limited to real
estate, equipment liens, and personal guarantees. The BDF may subordinate to
a senior lender.