CEDLI | Co-Lending for Small Business

CO-LENDING PROGRAM FOR SMALL BUSINESS
CEDLI’s small business loan program, called the Co-Lending Program, provides capital to growing businesses in both urban and rural areas that are currently not able to qualify for conventional bank financing. All small businesses in all industries are eligible for financing. Providing access to minority and women owned businesses is a high priority. CEDLI works in partnership with its member banks in the Co-Lending Program by funding up to 50% of the loan requirement of a business in the form of subordinated debt, while a member bank funds the other 50% or more of the financing need.

Summary of Terms
Total Financing Need	The Co-Lending Program may be used to fund needs from $100,000 to several million dollars.
CEDLI Amount	$50,000 minimum to $500,000 maximum investment by CEDLI in the form of subordinated debt. CEDLI investment amount not to exceed a maximum of 50% of the total financing.
Loan Structure	Term Loans with a maturity of up to seven years, amortization up to ten years.
Interest Rate	Pricing in accordance with risk, approximately prime plus 2 - 5 % p.a. Minimum rate 8.0% p.a.
Origination Fee	3.0% loan origination fee plus loan documentation fee for reimbursement of legal expense.
Use of Proceeds	Equipment purchase, permanent working capital, business acquisition, lease hold improvements, financing accounts receivable and inventory. Loans for speculative purposes will not be considered eligible.


Borrower Eligibility
Target Borrower	All small businesses are eligible for CEDLI loans in both urban and rural areas, a priority is placed on making the program accessible to minority and women owned businesses, as well as businesses that are located in low income communities and rural areas.
Size of Business	Small businesses with up to approximately $10 million in sales.
Type of Business	For profit and nonprofit businesses are eligible.
Operating History	Must be in operation for at least 12 months and located in California.
Financial Criteria	Small business is profitable in latest 12 months with positive trends in future cash flow. Small business has positive tangible net worth. One year financial projection demonstrating adequate debt service capacity and a debt service coverage ratio of 1.1x or greater. No major derogatory personal credit on part of principals of small business.


Application Process
If you are eligible to apply for a CEDLI loan based on the criteria described above, or you would like more information about the Co-Lending for Small Business Program, please contact a CEDLI office near you: Northern California - Oakland, Clinton Etheridge, Vice President, (510)267-8992. Southern California - Los Angeles, Bruce Dart, Vice President, (213)347-2202. Statewide, Ray Mendoza, President, (510)267-8998.