Loan Terms

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Maximum Loan Amount

The maximum available loan amount is $100,000 or up to 100% of your business’ average monthly revenues for three months prior to the date of your application. The maximum loan amount available under this program is $100,000.

Example of how your maximum loan amount is calculated

To determine your business’s average monthly revenue for an estimate of potential loan size, the lender may use the following:

September 2019 Revenues: $10,000
October 2019 Revenues: $15,000
November 2019 Revenues: $20,000

Based on this example, the average revenues for the period is $15,000 so three months of average revenues would be $45,000. In this example, the maximum loan size would be $45,000.

Please note: The actual size of the loan for which you may be approved will be determined by the lender after review of your business’s documentation and financial information. The amount of the loan for which you are ultimately approved may be less than the amount indicated by the example above. If the average monthly revenues for your business for the three-month period is greater than $100,000, the maximum loan size will be $100,000.

Interest Rate

The current fixed annual interest rate for loans issued under the program will be WSJ Prime Rate + 1.0%. The interest rate will be fixed for the life of the loan.

Exception: If your business is based in San Francisco —San Francisco- based businesses may be eligible for 0% interest loans as a result of local City support. The interest rate will be fixed for the life of the loan.

If there is a change in the Wall Street Journal Prime Rate, the interest rate on loans offered under this program after such change may increase or decrease, but any change would not affect loans already approved. Any updates to the rate will be communicated through this website.

Repayment

There are two different types of loans offered under this program: one with a 60-month repayment schedule, and the other with a 36-month repayment schedule. Your eligibility for the type of loan for which you qualify will depend on your financial qualifications, which will be determined by the lender.

60-Month (5 Year) Term Loans

The repayment details of loans offered with a 60-month repayment schedule include:

For months 1 – 12: Interest-only payments; you will be making monthly payments only on the interest charged on the loan
For months 13 – 60: Principal and interest payments; your monthly payments will include interest and principal based on a 48-month fully amortizing schedule

For example*:

Assuming a fixed interest rate of 5.00%:

Loan amount	$100,000	$50,000	$20,000
1-12 months	$416.67	$208.33	$83.33	interest only
13-60 months	$2,302.93	$1,151.46	$460.59	interest + principal

Assuming a fixed interest rate of 5.75%:

Loan amount	$100,000	$50,000	$20,000
1-12 months	$479.17	$239.58	$95.83	interest only
13-60 months	$2,337.06	$1,168.53	$467.41	interest + principal

*Simple interest will be charged on the loan. For months 1-12, monthly interest-only payments are required. For months 13-60; principal and interest monthly payments are required based on a straight-line amortization over 48 months and assuming full repayment at 60 months. Final payment may differ. Payments are estimates for illustrative purposes only.

36-Month (3 Year) Term Loans

The repayment details of loans offered with a 36-month repayment schedule include:

For months 1 – 12: Interest-only payments; you will be making monthly payments only on the interest charged on the loan.
For months 13 – 36: Principal and interest payments; your monthly payments will include interest and principal based on a 24-month fully amortizing schedule

For example*:

Assuming a fixed interest rate of 5.00%:

Loan amount	$100,000	$50,000	$20,000
1-12 months	$416.67	$208.33	$83.33	interest only
13-36 months	$4,387.14	$2,193.57	$877.43	interest + principal

Assuming a fixed interest rate of 5.75%:

Loan amount	$100,000	$50,000	$20,000
1-12 months	$479.17	$239.58	$95.83	interest only
13-36 months	$4,420.80	$2,210.40	$884.16	interest + principal

*Simple interest will be charged on the loan. For months 1-12, monthly interest-only payments are required. For months 13-36; principal and interest monthly payments are required based on a straight-line amortization over 24 months and assuming full repayment at 36 months. Final payment may differ. Payments are estimates for illustrative purposes only.

Terms

5 years (60 months) or 3 years (36 months)

What Can I Use My Loan for?

You loan can be used for:

Working capital
Inventory
Marketing
Refitting for new social distancing guidelines
Operating and emergency maintenance
Property taxes
Utilities
Rent
Supplies
Other appropriate business purposes.

Proceeds may not be used for refinancing a loan from another community lender but may be used refinance high-cost debt.

You will be required to detail the proposed use of loan proceeds when you apply.

Borrower Fees

Loans may include minimal third-party fees up to a maximum of $250 such as UCC filing fees or wiring fees, for example.

Please note: If you receive a loan, and do not make your loan payment on time, a late fee may be assessed by your lender. You will be shown any fees associated with the loan prior to your acceptance of any loan terms.

Security and Guarantees

No specific collateral is required to be eligible (e.g., you do not need to have access to any specific real estate or equipment).

Please note: This program requires a blanket first or second lien on business assets to be filed by the community lender and any owners with more than 20% ownership must sign a personal guarantee.

Prepayment

If you receive a loan, you may prepay the loan, in whole or in part, at any time without penalty.