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 six 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:

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 $1,214,000. 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.

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 4.45% as of 05/12.  Rate set at time of debenture sale.

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%.

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 $1,000,000. 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% guarantee fee and a $250 documentation fee.

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 25,000 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%.