Disaster Relief Loan Guarantee Program

With the current pandemic impacting many businesses, we wanted to share additional resources that could be available for assistance. To help small businesses that can experience capital access barriers, the Small Business Finance Center (SBFC) is collaborating with Financial Development Corporations (FDCs) to provide loan guarantees and direct loans.

Disaster Relief Loan Guarantee Program

Under the SBFC, there is a Disaster Relief Loan Guarantee program that could help given the challenges that have arisen with the current pandemic of COVID-19.

Who Can Apply?

You can be considered an eligible applicant if you are:

  • A small business located in California with 1-750 employees
  • An eligible Nonprofit

Meet the requirements of the Small Business Loan Guarantee Program and are located in a Disaster Area (Los Angeles and Orange County qualify).

Where Can You Apply?

Businesses that qualify may apply through participating Financial Development Corporations (FDCs). The list of FDCs for California are available at: ibank.ca.gov/publications/fdc

What Should I Know About the Loan Guarantee Programs?

As you consider the Disaster Relief Loan Guarantee Program, please keep in mind the following:

  • These are direct Bank loans, whereby the IBank provides the guarantee
  • Businesses (For-Profit and Non-Profit) need to meet eligibility requirements (NAICS Codes designation) and be located in a Disaster area (Los Angeles and Orange County qualify).
  • Promised turnaround approval time is 5 days

Loan Requirements

  • $1.25 million maximum loan amount
  • Loan proceeds must be used to recover from:
    • Significant Economic Injury
    • Significant Actual Physical Damage

Guarantee Terms

  • Max guarantee up to $1.25 million
  • Guarantees from 85%-95% of the loan which breaks down as follows:
    • 95% or $1M (whichever is less) based on interest rate:
    • 95% guarantee – interest rate does not exceed WSJP + 1%
    • 90% guarantee – interest rate is between WSJP + 1% and WSJP + 2%
    • 85% guarantee – interest rate exceeds WSJP +2%
  • Loan interest rates negotiated between lender and borrower
  • Qualifications based on lender criteria

There are a number of approved uses for the funds under this program. We invite you to review the SBFC for additional approved uses and additional guidelines.

How Can I Get Assistance?

You may contact F&M Bank's Specialized Lending Group by email: slg@fmb.com.

Additional Resources