PACE SBA Micro Loan

Intro | PACE SBA Micro Loan | SBA Financing | SOHO Loan | Workshops

Borrower:
Existing business, start-ups with minimum 50% equity contribution; No real estate investment or development projects, no financing entities.

Lender:
PACE Business Development Center, a comprehensive microenterprise service provider in Southern California.

Amount:
$500 - $15,000

Interest Rate:
8%-11% annually of the loan amount; a specific rate will be determined on a case-by-case basis, with the consideration of the personal credit record, the business financials and the collateral.

Purpose:
The secured PACE SBA Microloan to businesses in Los Angeles County for working capital, equipment, inventory, marketing and/or tenant improvements.

Maturity:
On a case-by-case basis, 12 to 36 months. No prepayment penalty fee.

Fees:
For details of packaging fees, please see the following.

Loan Size	Loan Term	Approx. Monthly Payment	Application Fee
$500-2,000	12 months	$93.22	$70.00
$3,500	24 months	$159.09	$100.00
$5,000	36 months	$156.68	$150.00
$7,500	36 months	$240.25	$150.00
$10,000	36 months	$313.36	2% of the loan amount
$12,000	36 months	$376.04	2% of the loan amount
$15,000	36 months	$470.05	2% of the loan amount

Minimum Requirement:
FICO score 650 minimum
Debt Service Coverage (DSC)  2.0
Collateral 100%
Co-signer with FICO score 650, may be required

DSC Ratio:
The barrower(s)/business will need to show the capability to generate Net Operating Income before tax and debt service, including the salary/wages of the officers, at 2.0 debt service for the aggregate of debt amount outstanding.

Funding Mechanism:
The secured funding will go through the controlled disbursements to clients, which may include issuing the check directly to vendors.

Collateral:
The collateral shall consist of the following with values calculated as below:
Vehicles                           65%                         of Kelly Blue Book value
Inventories                      35%                          of the book value at cost
Equipment                       50%                         of the book value at cost

Guarantee:
PACE SBA Microloan shall be guaranteed personally by the borrower(s), with 50% or more ownership, and the the co-signer(s).

Financial Reporting TA:
Borrower is required to provide PACE with financial statements (quarterly), and tax returns (annually). Minimum workshop attendance is also required.   

For more information, please contact Howard Sun (Loan Officer) at 213-989-3251 or hsun@pacela.org, or call 213-353-9400 to set up an appointment with one of our business counselors.