Disaster Relief Loan Guarantees

One of the IBank Small Business Finance Center’s loan guarantee programs is designed for Disaster Relief and is currently available to small businesses needing assistance to overcome economic injury caused by COVID-19. Businesses should apply directly with one of the participating lenders below.

The loan guarantees provided for the Disaster Relief Loan Guarantee Program help mitigate barriers to capital for those small businesses that do not qualify for federal disaster funds, including businesses in low-wealth and immigrant communities.

$1 million

Maximum loan guarantee available for the disaster relief loan guarantee program

1- 750

Small businesses in California with 1-750 employees are eligible for Disaster Relief Loan Guarantee financing

95%

Disaster Relief Loan Guarantee can cover up to 95% of the loan

COVID-10 Disaster Relief Wizard

Small Business Disaster Relief Loan Guarantee Program

Who Qualifies? Are You Eligible?

Small Businesses located in California with 1-750 employees that have been negatively impacted or experienced disruption by COVID-19 and eligible nonprofits can use the disaster relief loan guarantee program.

First Step - Apply For A Loan

Contact a participating lender in your area and apply for a loan. You also can receive help in the application from your local Small Business Development Center.

How Does A Loan Guarantee Work?

A loan guarantee mitigates the risk assumed by a traditional lending institution. A bank is more willing to provide access to capital if there is a guarantee in place that would repay up to 95% of the loan should there be a default.

What Can Loan Proceeds Be Used For?

The funds are meant to help small businesses through this challenging time. Loan proceeds can be used for business continuance or to cure “economic injury” as a result of the COVID-19 pandemic.

What Are The Loan Terms?

The loan can be guaranteed up to 7 years and cover up to 95% of the loan. The interest rates are negotiated between the lender and the borrower. Qualifications are based on lender criteria.

View our Small Business Profiles

IBank’s Small Business Finance Center supports communities throughout California by providing loan guarantees, Jump Start loans, disaster relief financing and more. Small businesses provide jobs in every region of the state and are a vital contributor to the economy. Check out some of the businesses that have used SBFC programs.

View our Small Business Profiles

IBank’s Small Business Finance Center supports communities throughout California by providing loan guarantees, Jump Start loans, disaster relief financing and more. Small businesses provide jobs in every region of the state and are a vital contributor to the economy. Check out some of the businesses that have used SBFC programs.

Frequently Asked Questions

Disaster Relief Loan Guarantee Program

Q: Who Qualifies for a Disaster Relief Loan Guarantee?

A: Eligible applicants are small business owners that have been negatively impacted or experienced disruption by COVID-19, wild fires or other officially declared disasters.

Q: What are some eligible uses of Disaster Relief loan guarantee financing proceeds?

A: Eligible uses of Disaster Relief Loan Guarantee financing proceeds include business continuance or to cure “economic injury” as a result of a disaster.

Q: What businesses are excluded?

A: Businesses that are not eligible include passive real estate businesses (rental income, etc.).

Q: What are the loan terms?

A: Loans terms are negotiated between the borrower and the lender.

Q: What is considered a small business?

A: The business must have between 1-750 employees and be established as an entity including:

  • Sole Proprietor – Individual using legal name as business name that files a Schedule C, Schedule F, or has a fictitious business name or DBA statement
  • If the loan appears to be in the name of an individual, evidence of Sole Proprietorship will be required and may include a Schedule C, Schedule F, Seller’s Permit, and/or fictitious business name or DBA statement
  • Limited Liability Company
  • Cooperative
  • Corporation
  • Partnership
  • S-Corporation
  • Not-for-profit

 

We will not accept an individual as the borrower. It is permissible for an individual to be a guarantor or co-borrower on the loan, but the primary borrower must be a small business. We do not consider citizenship or immigration status for eligibility requirements, as long as the entity/individual meet the above criteria. Trucking owner/operators are eligible as long as they are registered as a legal business entity.

 

AND

  • The business activity must be eligible under the program and in one of the industries listed in the North American Industry Classification System (NAICS) codes list. http://www.census.gov/eos/www/naics ; and
  • Must be located in a declared disaster area – A major disaster area declaration was made for the state of California on March 22, 2020 in regards to the COVID-19 pandemic.

Q: What are the Disaster Relief Loan Guarantee financing qualifications?

A: Disaster Relief Loan Guarantee qualifications are based on the criteria established by the lender providing the loan.  

Contact the IBank Small Business Finance Center

SBFC Program Manager: Emily Burgos

E-mail us, HERE 

Telephone: (916) 341-6600

Office: 1325 J Street, Suite 1300, Sacramento, CA 95814

Mailing: P.O. Box 2830, Sacramento, CA 95812-2830

Contact the IBank Small Business Finance Center

 

SBFC Program Manager: Emily Burgos

Office: 1325 J Street, Suite 1300, Sacramento, CA 95814

Mailing: P.O. Box 2830, Sacramento, CA 95812-2830

E-mail: COVID19Loan@ibank.ca.gov

Telephone: (916) 341-6600