In a move aimed at supporting small businesses in California, the state has launched a new tool called the "California Small Business Loan Match", according to a press release on April 24th. The tool, provided by the California Infrastructure and Economic Development Bank (IBank), connects entrepreneurs with trusted lenders to help them access capital more easily.
The California Small Business Loan Match is a no-cost, user-friendly platform that allows business owners to connect with lenders that specialize in their specific industry or location with one application. By providing a centralized database of vetted lenders, most of which are Community Development Financial Institutions (CDFI's), the tool simplifies the often-complex process of securing financing for small businesses.
"Access to capital is critical for small business success, and we're committed to making that process as straightforward as possible for entrepreneurs in California," said Scott Wu, Executive Director of IBank. "The California Small Business Loan Match puts the power of choice in the hands of business owners and connects them with lenders who understand their unique needs."
The platform features a directory of the lenders in the program. They are the following:
3CORE, INC.
Accessity
Access Plus Capital
Arcata Economic Development Corporation
California Capital Financial Development Corporation
California Coastal Rural Developmet Corporation
CDC Small Business Finance
Clearinghouse CDFI
DreamSpring
Lendistry
LENDonate
Main Street Launch
National Asian American Coalition
NCRC Community Development Fund, Inc.
PACE
PACE Finance Corporation
PCR Business Finance
Pacific Community Ventures
Working Solutions CDFI
One thing I noticed on the Loan Match site in the 'responsible lending' section was a dig at online lenders and Merchant Cash Advances, even saying "MCA loan", which they are not loans. They lump online lenders and MCAs together when saying they tend to have high "interest", while MCAs have no "interest" and there are plenty of Online Lenders that have lower cost loan products.
Yes, they are correct that MCAs have a higher cost of capital than traditional bank loans. Still, some MCAs can be very reasonable depending on who you go to and the opportunity cost involved. IBank should be more accurate when describing alternative products given the laws surrounding commercial finance recently enacted.
California Small Business Loan Match is brought to you by IBank
California Small Business Loan Match is a new lender-match tool provided by IBank’s Small Business Finance Center as an extension of our Loan Guarantee Program. We created Loan Match to ease the process of finding trusted loans for California entrepreneurs, gathering dozens of lenders on one platform for a one-stop experience. All lenders have been pre-vetted and enrolled in IBank’s Loan Guarantee Program, which specializes in bridging the gap between responsible lenders and small businesses.