Competitive financing for California businesses struggling to qualify for traditional loans.

Pacific Community Ventures (PCV) is a local lender that specializes in providing financing to small businesses that struggle to qualify for a business or SBA loan. You’ll find no credit or revenue cutoffs, and its maximum interest rates are lower than where some business lenders start. But it requires a personal guarantee from all owners and doesn’t work with startup

$10,000

Min. Amount

$200,000

Max. Amount

Details

Product Name Pacific Community Ventures small business loans
Min. Amount $10,000
Max. Amount $200,000
Loan Term 1 to 5 years
APR 8.87% to 22.39%
Requirements Located in California, at least 12 months in business, profitable, at least one employee

Application Criteria

  • At least one year in business
  • At least one part-time or full-time employee
  • Operates in California
  • Profitable business

First, do I qualify?

Your business must meet qualifications that include:

  • A business location in California.
  • At least one part-time or full-time employee.
  • At least one year in business.
  • Profitability.

What is PCV?

PCV is a nonprofit community development financial institution (CDFI) with a mission to provide support to underserved businesses in California. It offers loans from $10,000 to $200,000 that small businesses can use for any legitimate purpose, including working capital, buying inventory or even acquiring another business.

Interest rates range from 7% to 13%, and terms run from 1 year to 5 years. PCV also charges a 1% to 5% loan fee before you get your funds, taking the APR range to 8.87%–22.39%.

What makes PCV business loans unique?

While any business that meets PCV’s requirements can apply for a loan, its mission is to provide affordable financing to small businesses having a hard time qualifying for traditional loans or SBA-backed funding.

PCV doesn’t require a minimum credit score, though it runs a credit check on each owner with more than a 20% stake in the company. Even if you don’t get approved, even applying may be worth it: It either refers you to a partner lender that can offer you funding or connects you with a business adviser that can help you strengthen your application.

What are the benefits of a PCV business loan?

  • Competitive rates. With APRs from 8.87% to 22.39%, PCV might offer one of the best deals out there for business owners struggling to find financing.
  • Collateral optional. You don’t need to put up equipment, real estate or other business assets to qualify for this loan. But you can if you think it will strengthen your application.
  • All credit types welcome. PCV doesn’t require a minimum credit score, though it checks the scores of all business owners.
  • Advising program. PCV offers free small business advice to help your business continue to grow.

What to watch out for

  • Only available in California. PCV is a local CDFI that serves business owners in the Golden State only.
  • Must be profitable. This lender only works with businesses that are cashflow positive and doesn’t work with startups.
  • Personal guarantee. Everyone who owns 20% of the business or more is required to personally guarantee the loan, meaning they’re partly responsible for repaying it if the business folds.
  • Closing fee. In addition to interest, PCV charges a fee of 1% to 5% of the loan amount before your business gets the funds.
  • Not ideal for emergencies. It can take 24 hours to get a response from PCV after you submit your preapplication and another one to three days to find out if you’re approved.

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