a public service of:
Cal Feminist Federal Credit Union ~
PO Box 16587 - San Diego, CA 92176 ~
Tel. (619) 298-SAVE (7283)
1. Your usual source for a business loan is a commercial bank:
banks have the staff and expertise necessary to evaluate the chances
of success for a particular business. They have as well the ability to
afford the risk involved.
When you apply, they will expect you to have a written business plan
that includes enough money to live on while your business is building up.
The bank may be concerned if you ask for too little money!
Lenders consider business loans to be highly risky. Their lending rates
reflect this. You’ll qualify for a lower rate if you can offer collateral or
security for the loan, such as a trust deed on your home, if you own one,
or the title to a motor vehicle.
We hope that the information listed here will help you find an alternative
lender and/or the resources to help you prepare a solid business plan.
With such a plan, you’ll have a better chance of approval when you do
apply for a business loan.
2. Resources for education (not necessarily loans):
e. Disabled Business Persons Association: in San Diego:
f. Acción: according to their brochure:
They "provide loans to business owners who don't fit traditional
molds--for example, people with brief histories operating business,
lack of collateral, incomplete financial records, language barriers,
or even those with imperfect credit records."
f. Count-Me-In for Women’s Economic Independence:
from their Web site on 2/24/09, "Our mission is to promote
economic independence and the growth of women owned
businesses...[we are] the leading national not-for-profit provider
of resources, business education and community support for
women entrepreneurs seeking to grow micro businesses to
million dollar enterprises.":
Count Me In, Inc.
240 Central Park South, Ste. 7H
New York NY 10019
Web site: www.count-me-in.org
Tel. (212) 245-1245
Fax (212) 245-1236
g. Credit unions: some of the larger credit unions have started
to make small business loans. But they are more likely to make
loans to individuals--who remain responsible for the debt even if
the business does not endure--than to businesses.
Most credit unions already makes loans to business owners
and/or self-employed individuals for the purchase of such things
as a home, car, or appliance for their personal use. to find out
which credit unions in your area do make business loans, contact
the California & Nevada Credit Union League’s Credit Union
Match UP Program:
Tel. 800) 472-1702
h. Share what you learn: as you lookup Web sites and make
calls, please let us know of:
3. What can Cal Feminist do for you? If you join--or already
belong to--our credit union:
while we do not ordinarily make business loans,
there is one exception to the rule: if you have an existing
business—or you have a good business plan—but you:
· don’t qualify for loans from other lenders or
· you don’t have enough collateral or
· you haven’t the time to want to wade through all of the
this unusual loan might work for you:.
Perhaps you know someone who would consider investing in
your business, but they don’t want to:
Instead of lending money to you, your investor can open a savings
account at Cal Feminist. They use their Cal Feminist savings account
balance as the collateral or security for your loan. You do not need to:
For more info, see below. For rates, click on Loans and scroll down
to "Savings-Secured" Type II.
4. Other resources for credit problems:
a. Why is it risky for you to file Chapter 7 bankruptcy?
(1) More and more prospective employers will check your credit
history. A bankruptcy could make them afraid to hire you.
(2) When you are shopping for business loans, lenders will be
afraid to lend to you.
(3) What "debt relief" bankruptcy mills don't tell you is this:
after a bankruptcy, lenders that charge the lowest rates will be
afraid to lend to you. Your only option will normally be to pay
much higher rates for car loans, home loans, and business loans.
Your extra cost of borrowing may exceed the amount of the debts
you discharge in bankruptcy.
b. If lenders are hounding you about past-due payments:
contact the not-for-profit Money Management International (MMI).
They do not lend money. They do offer budget counseling, with a
plan to help you free yourself of debt.
They can help you stop the harassing phone calls from creditors
without the problems or fees of bankruptcy.
Nationwide: Tel. 866-889-9347
c. if you are using credit compulsively, you may want to
contact Debtors Anonymous:
In San Diego County: San Diego D.A. Intergroup
PO Box 22261
San Diego CA 92192
Outside of San Diego County:
How to Stay Out of Debt and Live Prosperously