Business Loan Products

Our loans are built to help established and start up businesses access Working Capital, acquire equipment, assist with commercial real estate, restructure debt, or help with project financing. All our loans are structured to provide affordable rates and fees compared to high-cost alternative lenders. Additionally, our loans also come with professional business coaching from our team of highly skilled consultants.

What We Offer

What We Look For

CAPACITY: Does your business have the financial capacity to support debt and expenses? Typically a business needs to have $1.25 of income to support every $1 of debt service. The extra $0.25 provides a cushion for your business to absorb unexpected expenses or a downturn in the economy.

CAPITAL: Your business owns capital assets such as cash and equipment; is there enough to help support the financing you want? You and others may have invested capital in your business; how much? The answers say a lot about whether the business is one in which the lender wants to invest.

COLLATERAL: Equipment, commercial real estate, personal residence, accounts receivable, inventory, cash, are all forms of collateral that lenders leverage to secure loans. In addition to looking at the value of your collateral, the lender will consider any existing debt you may still owe on that collateral.

CONDITIONS: The state of the economy, trends in your industry and pending legislation relative to your business are all conditions that are considered by lenders. These types of factors—often out of your control—may affect your ability to make payments.

CHARACTER: Work experience, experience in your industry and personal credit history are all character traits lenders will consider. Your personal integrity and good standing—and the integrity and standing of those closely tied to the success of the business—are critically important.

Frequently Asked Questions (FAQ’S):

The Microloan Program provides small, short-term loans to small business concerns and certain types of not-for-profit child-care centers. The SBA makes funds available to specially designated intermediary lenders, like Prestamos, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries make loans to eligible borrowers. The maximum loan amount is $50,000.

If you apply for microloan financing, you may be required to fulfill training and/or planning requirements before your loan application is considered. This business training can be helpful to you as you launch or expand your small business.

To apply for a loan contact the Prestamos CDFI office closest to you.. You can also start the process online here. Please consider preparing in advance by gathering personal tax returns, identifying collateral available, compiling a list of existing debt, and updating your business plan. This will help facilitate the process.

It’s simple! Simply, contact the Prestamos CDFI office closest to you or start the process online here. Our helpful staff will also explain our loan procedure to you over the telephone or via email.

The time of the process varies based on the scope of application. If the business is a start-up you would go through an initial assessment process before you can submit a loan application. Existing business owners would set up a meeting with a Business Relationship Officer to discuss the loan application. You then go through an internal review process and if that process is favorable you have the possibility to go to the loan review committee. Typically you will receive feedback from Prestamos CDFI staff as to the status of your application. Prestamos CDFI staff is happy to assist you in presenting a complete loan application. Most delays occur due to incomplete loan applications. If your application is complete and the process is not held up for missing documents the processing time is between 25-60 days.

Prestamos CDFI has the requirement of at least a 600 on your credit report. No major derogatory reports, defaults, insolvencies such as: bankruptcy, repossession, or foreclosures in the past three years after formal discharge. No existing liens, outstanding collections, or judgments.

When considering credit, Prestamos CDFI looks at the circumstances behind these credit issues such as medical or divorce. Repaired and rebuilt credit is also considered. Prestamos CDFI looks favorably on efforts to rectify past credit issues. Prestamos CDFI uses your credit report to gauge how you have handled past debts. If you have credit issues, you should submit a detailed personal statement explaining the circumstances and actions taken with your loan application.

Appropriate collateral depends on many factors most especially the size of your loan request. Prestamos CDFI will require a personal guarantee, business assets as collateral. It is common to also pledge personal assets and/or have a co-applicant to strengthen a loan application. (Examples of collateral include: home or property, vehicles, equipment, inventory, and accounts receivable).

No. Prestamos CDFI is a private nonprofit organization. We are certified by the US Department of Treasury as a Community Development Financial Institution and Community Development Entity. We are also a US Small Business Administration Lender.

In general, a successful loan package includes a good business idea and a plan and strong business management skills. When considering a loan application, Prestamos CDFI uses the ’5 C’s of Credit’ as a rule of thumb.

  • Capacity – The capacity of the business and yourself to repay the loan.
  • Collateral – Is the collateral you have offered enough to repay the loan if all else fails?
  • Conditions – The conditions in which your business must succeed. Conditions include but are not limited to: the economy, your competition, and the market.
  • Credit – Your credit history and how you have repaid previous financiers.
  • Character – Your personal characteristics and your ability to successfully operate the business.

The strengths and weaknesses of each ‘C’ are weighed.

A business plan is the ‘roadmap’ for your business. A good business plan is your best business management tool and is also required in order to apply for a loan. There are many local resources and websites that discuss business plans. See our Resources page for more information.

Prestamos CDFI often works with banks and other community lenders. Prestamos CDFI can ‘participate’ in multiparty financing. If your needs are greater than $1,000,000 it is best to contact the Prestamos CDFI office closest to you to discuss options.

Loan terms vary according to:

  • The size of the loan
  • The planned use of funds
  • The requirements of the intermediary lender
  • The needs of the small business borrower

Interest rates vary, depending on market conditions.