This document summarizes the business lending services provided by Self-Help, a Community Development Financial Institution. Self-Help offers various loan programs for businesses including simple loans up to $15,000 for vehicles and operational needs, micro business loans up to $35,000, and business loans over $35,000. They provide funding for working capital, vehicles, equipment, real estate, and other business purposes. The document provides examples of loans provided, including a $7,000 working capital loan, a $20,000 delivery van loan, a $75,000 equipment loan, and an $800,000 restaurant renovation loan. Contact information is provided at the end for those interested in Self-Help's business lending services

1. Presented by Jennifer Sherwin
Business Lending
at Self-Help

2. Who is Self-Help?
 Community Development Financial Institution
(CDFI).
 Mission: provide ownership and economic
opportunity for all, especially people of color,
women, rural residents, and low-wealth families
and communities.

3. What will be covered
 Overview of our loan products
 Loan Examples

4. Who we fund
 For Profit Businesses
 Non Profit Businesses
 Religious Institutions
 Supportive Housing
 And more

5. What purposes we fund
 Working capital
 New and used vehicles
 Equipment purchase
 Business space up-fit
 Real Estate Purchase

6. What loan programs does
Self-Help offer?
 Simple Business Loans for business vehicles
and loans up to $15,000
 Micro Business Loans $15K-$35K
 Business loans > $35,000

7. Simple loans for vehicles and
operational loans ≤ $15,000
 Loans can be secured with cash, vehicle,
equipment.
 Unsecured loans available up to $7,500 for
qualified borrowers.

8. Criteria for simple business loans
 Will be looking that your current source of
income can cover this loan payment.
 Businesses with 2-year track record.
 Start-ups w/secondary source of income.
 Must have good personal debt to income.
 Credit will determine the interest rate.

9. Micro business loans up to $35K.
 Looks at current source of income as means to pay for
this loan.
 Must have relatively good credit
 Must be well secured with real estate or cash
 If a start-up - need another source of income
 Existing business - need 2 years tax returns w/profit in
last year
 Fixed, 9.75% interest rate – over 3-5 year term

10. Criteria for loans > $35K
The five “Cs”
– Character/Management experience
– Capital/Owner’s investment
– Cash Flow
– Credit History
– Collateral
 Other: Personal Debt to Income and Secondary Source of
Income

11. SBA loans
Must be US citizen
Can only be used on For-Profit Businesses

12. SBA 7A
 Must be lender’s basic underwriting criteria
 SBA provides lender a 75%-85% guarantee
 Interest and term – varies based on loan
purpose
 In addition to lender fees, borrower pays 2%-
3% fee on the SBA’s guaranteed portion.

13. SBA 504 loans
 Large capital purchases only, usually real estate.
 Requires partnership with another lender
 Less down payment than traditional loans
– 10% if existing business
– 15%-20% if new business
 Structure: bank will do 50%; borrower 10%-20%
and SBA 504 30%-40%
 Rates: fixed interest rate over 10-20 year term

14. $7K working capital for a barber
 Borrower’s spouse will co-sign and has
secondary source of income.
 Borrowers have minimal personal and
business debt.
 Borrowers have decent credit.
 Borrowers qualify for unsecured simple
business loan.

15. $20K for a small delivery van for
existing caterer
 Owner has 2 yrs. of tax returns showing a profit
 Owner has good credit and low debt/income
 Vehicle qualifies for our Simple Loan product
 Interest and term will depend on age of vehicle
and personal credit.

16. $75K for equipment for existing
computer consulting business
 Borrower has fairly good credit.
 Business has been profitable and cash flow
shows can handle this additional debt.
 Has $30K of real estate collateral to pledge.
 Lender uses SBA 7a to guarantee loan.
 Rate: Prime + 2 variable rate over 5 years.

17. $800K to purchase and renovate
space for an existing restaurant.
 Borrower meets lender and SBA 504 underwriting
criteria.
 Borrower puts down $80K (10%).
 Other lender does loan for $400K (50%)
 SBA does loan for $320K (40%)

18. Contact Information
Center for Community Self-Help