We're thrilled to announce that beginning today PCV is offering microloans in levels of $10,000 -$50,000 to assist California smaller businesses add jobs, purchase equipment, expand their inventories, repair machinery, or cope with construction.
PCV's small company loan program started throughout the Recession, when many major banks stopped offering business loans under $250,000. This capital crunch made things harder for smaller businesses in underserved areas who have been already fighting to remain afloat. 1/3 of entrepreneurs who obtain a financial loan are rejected; 54% among people of color. And ladies in general are rejected for loans 20% more frequently than men.
In California, PCV continues to be filling part of this gap with loans between $50,000 – $200,000 for small businesses that can't get financing from traditional banking institutions or even the Sba. We listened when more and more of you said that you need small company loans under $50,000, and you're being turned down by other lenders, banks, and lending institutions.
The Federal Reserve's research also shows 39% of all small business applications are below $50K. Traditional banking institutions aren't meeting that require, so unfortunately more and more small business owners are embracing online lenders with sometimes predatory rates.
As a nonprofit whose mission would be to create jobs for employees and support small businesses who've were built with a hard time accessing capital, we had to respond to your need.
About Our New Microloan Program
PCV Small company Lending helps communities grow by purchasing individuals who build businesses and generate jobs within their neighborhoods. We offer small company loans to entrepreneurs over the state of California, with a focus on underserved borrowers such as women, people of color, and veterans.
- Loans can range from 1-5 years
- Interest rates range from 9% – 13% fixed each year (with respect to the amount borrowed and other credit factors)
- No penalties for early repayment of loans
- All loans are fully amortized
- No hidden fees: One-time 3% – 5% loan fee at closing
- No minimum credit ratings for consideration
- Free access to our pool of 400+ expert business advisers
In the Bay Area, our economic boom has outstripped a lot of the country with regards to creating new jobs – but those gains have gone to investors or highly-educated workers in high-paid fields. The middle class is leaving, and just what you're playing is minority of highly paid people and the low-wage workers that support them.
PCV is laser-focused on small company like a main issue with the solution. Small businesses employ 1 / 2 of California's private sector workers, but too many of these companies are not able to access loans from traditional financial institutions since they're too young or not big enough. With Pacific Community Ventures, you can access the capital you need, from a nonprofit lender you can trust.
