The Golden State of California’s economy is massive, with a gross state product of 3 trillion, which is larger than most countries globally. California is ranked as the fifth-largest economy in the world and is the home to 3 of the world’s ten largest companies by marketization. With such sizable economic development, California small businesses can capitalize on such a large market and workforce. California usually accounts for three-quarters of all U.S. job creation with access to many different types of workers.
With all that California small businesses have going for them in the state, small businesses still have the same challenges and limited resources to acquire a small business loan from a bank. Getting California business loans from traditional banks like Wells Fargo, Bank of America, or Chase Bank will be challenging due to their strict small business loan requirements. AdvancePoint Capital can provide affordable loans through the resources of a marketplace of financial institutions, small business loan options and alternative funding options for small businesses.
How Do I Get A
Small Business Loan in California?
AdvancePoint Capital has the resources, experience, and access to a large small business finance center marketplace with various loan programs to help borrowers. We guide, provide, and serve the needs of every borrower, no matter what the industry, community, language (including Spanish), revenue, or income qualifications.
AdvancePoint Capital helps small businesses thrive and make smart funding decisions using our simple application process. We view the customer relationship as a partnership. Experience our easy business loan process! We have the resources to help the small business owner compare, shop, and save various small business loan options to get the right result and make the right loan program decision.
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AdvancePoint Capital makes the loan application process a simple, straightforward experience.
The 9 Best
Financing Options and Resources for
California Small Businesses
Small Business Loans for California
The most requested finance product that most small businesses ask for is a small business term loan. The main reason small business owners love term loans is fixed rates, fixed terms and fixed payments.
SBA Loans in California
The Small Business Administration is the federal agency that administers the loan guarantee program for approved SBA lenders. The small Business loan guarantee is for approved lenders so the will lend to small business and offset the risk for default. SBA loans have great interest rates and very attractive terms. SBA lender criteria can be tough, but eligible applicants are encouraged to apply for funds.
Merchant Cash Advance in California
A Merchant cash advance is an advance paid back out of future credit card processing sales receivables of the business. This is not a loan, but an advance. Popular with business owners who cannot get approved for traditional business loans. No minimum credit score requirement. Business owners often use proceeds for working capital.
Business Cash Advance in California
Business cash advance is not a loan, but an advance of future sales receivables of the business. A set fixed percentage of future sales is the form of repayment for the advance, making repayment flexible to future sales cash flows. No minimum credit score requirement.
Business Line of Credit in California
A business line of credit is a revolving line that a business owner can draw funds from at any time up to a credit limit without having to go through an approval process every time you draw. Interest is only applied based on outstanding balance. Attractive interest rates.
Equipment Financing for California
For businesses that rely on heavy equipment, equipment financing is a great solution that leverages the equipment as collateral to receive favorable terms at offset the high cost of acquisition. Repayment duration is over years and not months making payments affordable.
Invoice Financing in California
Invoice financing, also called factoring, is for businesses that predominately invoice there clients on a monthly basis for goods and services and want to get an advance off of those invoices before they meet terms whether it be 15,30,45 or 60 days. Great business funding product to accelerate cash flow.
Short Term Small Business Loans in California
Short term small business loans are shorter in duration to repay so that greater risks can be taken by business lenders and allows for looser criteria such as credit and cash flow analysis, making it easier to get approved. Fast loan process and great option for working capital.
Long Term Business Loans for California
Long term small business loans are for small business owners wanting to finance large expensive expansions to there business and loan amounts that need to spread lending terms over an extend period of time so they can have affordable small business loans with attractive payments based on current revenue streams.
How to Grow Your Business in Los Angeles
View the Los Angeles Small Business Resource Guide for information and assistance in growing your Southern California business, exploring funding options, and contracting.
How to Grow Your Business in San Francisco
View the San Francisco Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting.
How to Grow Your Business in Sacramento
View the Sacramento Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, finding an SBA lender, and contracting.
How to Grow Your Business in San Diego
View the San Diego Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, an SBA lender, and contracting.
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Why Do California Small Business Owners Need Money?
The most common business needs that small businesses use loan proceeds include:
Additional Resources, Advice, Needs, Latest News, Loans, Government Programs Help and Information for California Small Business
IBank California Infrastructure and Economic Development Bank – IBank’s Small Business Finance Center features a loan guarantee program designed to assist small businesses that experience capital access barriers. The Small Business Finance Center Small Business Loan Guarantee Program encourages lenders to provide funds to small businesses to help them grow and prosper.
IBank’s Small Business Finance Center, a financing agency within the Governor's Office of Business and Economic Development, which provided the initial cash for the fund, supports communities throughout California by providing loan guarantees, jump-start loans, disaster relief financing, and more. Small businesses provide jobs in every region of the state and are a vital contributor to the economy.
Originally known as the California Small Business Loan Guarantee Program (SBLGP), the SBFC received seed money in 1968 to reduce unemployment by supporting entrepreneurship and small businesses. The Small Business Finance Center promotes statewide development by increasing opportunities for entrepreneurs, the self-employed, and microbusinesses.
The Small Business Loan Guarantee program, managed by the Small Business Finance Center, helps California businesses create and retain jobs and encourages investment in low- to moderate-income communities. The Small Business Loan Guarantee program is available to small businesses throughout California and serves hundreds of small businesses each year to help those California small businesses thrive.
Through the California Small Business Loan Guarantee Program, the Small Business Finance Center (SBFC) partners with different financial development corporations to give capital to small businesses for a variety of needs. Any California-based business with one to 750 employees is eligible to apply. Loan amounts can go up to $20 million, and the SBFC guarantees 80% to 95% of the loan. For less established California businesses wondering how to get a small business loan. To apply for loans through the program, your primary business must be located in California, as well as at least 51% of your employees or income. Check eligibility requirements for the business loan guarantee program.
The Small Business Loan Guarantee program helps businesses create and retain jobs and encourages investment in low- to moderate-income communities. The Small Business Loan Guarantee program is available to small businesses throughout the state of California and serves hundreds of small businesses each year.
California Capital Access Program for Small Business The California Capital Access Program for Small Business , also known as CalCAP, is a loan loss reserve program that can cover up to 100% of certain business loans from California lenders.
California Rebuilding Program: Disaster Relief – Loan Guarantee Program – The Small Business Loan Guarantee program helps small businesses create and retain jobs. The Small Business Loan Guarantee program is available to small businesses throughout the state of California. The Small Business Loan Guarantee program was initially established in 1968 in an effort to reduce unemployment by supporting small businesses. The Finance Center promotes statewide development by increasing opportunities for entrepreneurs, the self-employed, microbusinesses, and small business owners to have better access to capital and other technical resources.
In response to businesses struggling with the pandemic, Gov. Gavin Newsom unveiled a small business loan program called the California Rebuilding Fund in late November 2020.
The SBLG program helps businesses create jobs and encourages investment in low- to moderate-income communities. $509.6 million overall capital was injected into the state’s small business community last fiscal year through loans guaranteed by IBank. There have been over 20,000 loans guaranteed by the SBFC Loan Guarantee program since the early 2000s.
Valley Economic Development Center Business Loan – VEDC business funding can come in three forms: standard loans, microloans, and microenterprise loans. Small business owners in California looking for loans as small as $500,000 would do well to check out the affordable, transparent funding options that the state’s center offers their state-of-the-art business loan options.
Los Angeles County Development Authority - The Los Angeles County Development Authority has a handful of loan programs designed to support businesses in LA County. Their SMART Funding program lends to businesses involved in one of the following industries: manufacturing, clean technology, health and medical, or transportation development.
Working Solutions Working Solutions is a CDFI that lends to both startups and established businesses in the nine Bay Area counties.
Opportunity Fund – Opportunity Fund is one of the largest nonprofit small business lenders in the country. Opportunity Fund provides small business loans for various needs.
California Small Business Grants – Grants.ca.gov is managed and hosted by the California State Library. The Grant Information Act of 2018 (Stats. 2018, Ch. 318) required the State Library to build one website by July 1, 2020, “that provides a centralized location … to find state grant opportunities.