FAQ

What is a 504 loan?
This is a loan program that is sponsored by the U. S. Small Business Administration and administered by organizations known as Certified Development Companies (CDC).

In cooperation with a participating bank known as a ‘third party lender’ the combined loans of the SBA and bank are used to finance the fixed assets of a small business at better terms and conditions than that business may have received from conventional bank financing.

What is the advantage of obtaining a 504 loan?
The 504 loan program lets you make a low down payment with a fully amortized loan and gives you a fixed interest rate. In most instances your down payment will be as low as 10% with an interest rate lower than most conventional lenders.

What can be financed under 504?
The 504 loan will finance the fixed assets of a business. Traditionally, fixed assets are commercial real estate property or equipment that has an economic life of 10 year or longer.

What does a 504 loan cost?
All of the fees of the SBA loan are financed as part of your loan. As the borrower, your out-of-pocket costs will come from the participating lender and the costs of a title company (if the project involves real estate).

Does that mean that I have two loans?
Yes, once your loan is complete you will have to make payments to the third party lender and the Cen Cal Business Finance Group.

City of Fresno Revolving Loan Program

What is the advantage of using the City of Fresno Revolving Loan Program vs. conventional financing?
The City of Fresno Revolving Loan Program is not a substitute for conventional financing. We encourage small business owners to obtain conventional financing when possible.
If you have a business that is located in Fresno’s Empowerment or Enterprise Zones the City of Fresno’s Revolving Loan Program will give you special consideration and assistance in the financing of real estate, working capital and equipment purchases. Loans are offered with a fixed rate of interest and with extended maturities.

What is a third party lender and how will I find one?
A third party lender is a bank or a lending institution. Cen Cal works with many banks and non-bank lenders and will help you locate the one that best suits the financing of your business.

Does that mean that I have two loans?
Yes, once your loan is complete you will have to make payments to the third party lender and the Cen Cal Business Finance Group.

Who do I apply to first?
You should make application to the Cen Cal Business Finance Group first. We will determine your eligibility to borrow under this program, help with any additional paperwork needed and if approved will locate a participating third party lender if you do not have one.

What will this loan cost me?
There is no cost to making an application. Upon approval and the funding of your loan, you will be charged 1.5% of the loan amount plus $500 for processing. These fees can be financed as part of your loan.
You will also be charged a loan fee, which can vary, by the third party lender. Each third party lender has different fees. You will also be charged for any extraordinary costs such as appraisals and filing documents like a deed of trust.

Are there any other conditions that must be met?
Yes. In addition to being located in Fresno Empowerment or Enterprise Zones, you should be able to predict the number of jobs that will be created as a result of receiving this loan. While there is no penalty for not meeting the projected job creation, the prediction should be a reasonable goal.

Relending Loan Program

What are the advantages of applying for a loan under the Relending Loan Program?
The purpose of the Relending Loan Program is to provide affordable financing to existing businesses at a fixed rate of interest and usually with extended maturities.

Who is eligible for financing under this program?
If your Company has been in business for 12 months or longer and is located in Fresno, Kings or Madera counties you are eligible for financing. Loans to start-up businesses will be considered on a case by case basis.

What do you look for in an application that will finance a new business?
We look at your experience in the industry their company will be competing in. You should have a satisfactory personal credit history. We examine your contribution to the business and review any collateral offered.
We may ask you to prepare projections that provide an analysis of future sales, cost and expenses for the first 12 to 18 months of operation. We also ask that you include notes with your projections that explain in detail how you arrived at all sales, cost and expense figures.

What will this loan cost me?
There is no cost to making an application. Upon approval and the funding of your loan, you will be charged 1.5% of the loan amount plus $500 for processing. These fees can be financed as part of your loan.

If I own a house, will I have to offer as collateral for this loan?
It’s possible that you will be asked to include personal property, such as a house, to secure your loan. As a small business owner you should be ready to offer all business and personal assets as collateral regardless of equity.

Micro-Revolving Loan Program

What is the advantage of applying under this loan program?
This loan program is designed specifically for individuals in need of financing to start a business. Loans approved under this program will be at a fixed rate of interest with extended maturities.

Will I need collateral to qualify for a loan under this program?
Lack of collateral is not a reason for declining an application. But as a small business owner you should be ready to offer all business and personal assets to secure your loan regardless of how much equity you have.

What will this loan cost me?
There is no cost to making an application. Upon approval and the funding of your loan, you will be charged 1.5% of the loan amount plus $500 for processing. These fees can be financed as part of your loan.
You will also be charged a loan fee, which can vary, by the third party lender. Each third party lender has different fees. You will also be charged for any extraordinary costs such as appraisals and filing documents like a deed of trust.

Do I have to create jobs to qualify?
No. However, we are hoping that our financing will help your business will grow so that you will hire people, thereby playing a part in growing our local economy.

Do I need a business plan?
You should be able to present a summary on how your business will operate and grow in the market place.
It should include your resume and educational background, information regarding the products you will sell, your related experience, who will be your competition, and who you expect to be your target market.
Your personal credit history should be satisfactory. We will examine your contribution to the business and review any collateral offered.
We will ask you to prepare projections that provide an analysis of future sales, cost and expenses for the first 12 to 18 months of operation. We also ask that you include notes with your projections that explain in detail how you arrived at all sales, cost and expense figures.

Who is eligible to apply for financing under this program?
Applicants applying for financing under this program must have their business located in the rural areas of Fresno County. This means your business must be within the limits of Fresno County but outside the city limits of Fresno or Clovis.