Loan Programs

California Coastal Rural Development Corporation (Cal Coastal), a nonprofit corporation operates much like a commercial lender. We have the ability to provide direct loans and guarantee bank loans. We currently operate seven loan programs to provide financing for businesses and farms located in our lending foot print. On many of our programs we can operate statewide. Our loan programs can be used to purchase or refinance commercial real estate or farm land, machinery, equipment, inventory or working capital. These loan products allow businesses/farmers to get the boost they need to expand and grow into successful enterprises that help to strengthen the economy and create new jobs.

Since 1982, Cal Coastal has been instrumental in providing loans to thousands of small businesses throughout California. Cal Coastal offers a variety of loan programs to support small businesses including:

SBA 504 Loan Program

This loan program allows Cal Coastal to partner with a commercial bank to provide up to a 90% loan for major asset based purchases or for commercial property. The program calls for the partner bank to provide a 50% loan, the Cal Coastal SBA 504 loan would then provide 40% of the needed financing which allows the borrower to inject a minimum of 10% into the project. Interest rate is tied to U.S. treasury rates and the rate is estimated 4.38% as of 09/17.  Rate set at time of debenture sale.

Direct Farm Loans

In this loan program, Cal Coastal provides loans to family farms eligible for a Farm Service Agency guarantee. Loan proceeds may be used for crop production, harvest, farm ownership, farm improvements or equipment acquisition. Loans may be up to $1,399,000. Operating loans cover crop cycles. Farm ownership loans may have a maximum term of 30 years. Interest rate is variable based on prime or other indices.

Microloan Program

To provide credit and technical assistance to new or expanding small business enterprises. Loan proceeds may be used for inventory, machinery, equipment, leasehold improvements and remodeling expenses. Loans range between $5,000 and $50,000. Interest rate is fixed at prime plus 2.75% with a floor of 7.50%.

Intermediary Relending Program

Designed to promote small business enterprises. Loans to businesses that will hire or retain employees in rural areas. Business must be located in an unincorporated area or in a city or town with a population of 50,000 or less. Loans may be used for equipment acquisition, plant improvements and inventory and working capital. Loan size ranges from $25,000 – $250,000. Maximum term of seven years for equipment or working capital; longer terms on other uses. Interest rate is at variable prime rate plus 2.50% with the floor of 7.00%.

Monterey County Revolving Loan

This loan program is for businesses located in Monterey County. The loan must meet employment criteria of one job created or saved for each $20,000 lent. Loan proceeds may be used for inventory, furniture and fixtures, leasehold improvements, equipment, working capital or business acquisition. Loans range between $5,000 to $250,000. Rate tied to prime based on credit evaluation. $200 non-refundable application fee and 2.00% of loan amount due at time of funding, plus closing costs.

Loan Guarantee Program

To promote small business enterprises with special emphasis on assistance to those which will create or retain jobs. A commercial bank will provide the funds. Cal Coastal will guarantee up to 80% of the loan to a maximum guarantee of $2,500,000. Loans may be used for inventory, accounts receivable, equipment acquisitions, farm production and working capital. (e.g. Revolving lines of credit, short and intermediate term loans.) Maximum term of up to seven years. Interest rate determined by Lender. Cal Coastal charges a 2.50% guarantee fee and a $250 documentation fee.

Community Advantage – 7(a) Loan Program

For profit businesses in undeserved markets that can meet SBA’s size standards. Although a borrower must prove credit worthiness and the viability of the business idea; unlike traditional lending, qualification for this program is not limited by the size of the borrower’s balance sheet or the amount of collateral involved. Management and technical assistance is provided to ensure that your business can start, grow and achieve long-term success. Providing affordable credit for businesses that might not qualify for traditional financing Community Advantage can provide an alternative path to help build your business. A maximum of $250,000 with no set minimum and fees are based on maturity and dollar amount guaranteed. 

Underground Storage Tank Cleanup Fund

To assist small business owners and operators of Underground Storage Tanks (UST) to comply with UST regulatory requirements, Cal Coastal facilitates RUST (Replacing, Removing, or Upgrading Underground Storage Tanks) grants and loans, which are available thru the California State Waters Resources Board.  Such grants and loans may be used to finance up to 100 percent of the costs necessary to upgrade, remove or replace project tanks, including corrective actions, to meet applicable local, state, or federal standards.  For more information, including Fact Sheets and Applications, please see:

Pre-qualify here



California Coastal Rural Development Corporation

221 Main St
Suite 301
Salinas, CA 93901
Phone: (831) 424-1099
Fax: (831) 424-1094
2625 S. Miller St
Suite 106
Santa Maria, CA 93455
Phone: (805) 349-0798
Fax: (805) 623-8396
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