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Metal Plating Facilities Guarantee Program* |
In this issue: • Metal Plating Facilities Guarantee
• A Deal to Consider
• Mark your Calendars
• About SFV-FDC |
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*Effective July 1, 2006 - Loan guarantee program for chrome plating facilities to assist those facilities to upgrade, replace or purchase high performance environmental control technologies.
Program specifications: Eligible Applicants: The Applicant is any small business that owns or operates a chrome plating facility and satisfies one of the following conditions: 1. Has completed or is currently participating in the Model Shop Program for chrome platers. |
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2. Has completed or is currently participating in the National Metal Finishing Strategic Goals Program. 3. Is participating in a green business program whose goals are consistent with the pollution prevention and natural resource conservation elements of the Model Shop Program. 4. Is certified as a green business whose goals are consistent with the pollution prevention and natural resource conservation elements of the Model Shop Program. 5. Funds are not obtainable, upon reasonable terms, from financial companies, without a Guarantee
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Eligible Use of Proceeds: Environmental improvements identified by EPA to meet/exceed current environmental requirements, including but not limited to equipment purchase/upgrade. The proposed use of funds MUST be acceptable to the regulatory entities before a commitment letter can be issued.
Loan Types: Term Loans
Maximum Guarantee Amount: $100,000 or up to 90% of the loan amount, whichever is less. The guarantee's percentage may vary and is subject to |
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negotiation between the SFV-FDC and the lender.
Term of the Guarantee: Up to seven (7) years fully-amortized.
Interest Rates & Fees: Negotiated between the borrower and the lender. SFV-FDC charges a guarantee fee of 2% of the amount guaranteed, plus a documentation fee of $250; there is an annual guarantee fee of 0.5% of the guaranteed principal amount at the date of each anniversary.
Collateral: Required, if available, but each transaction is tailored to meet the borrower's financial situation. |
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A Deal to Consider |
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The San Fernando Valley Financial Development Corporation (SFV-FDC) recently provided a guarantee for a $1,125,000 term loan to Pinacoteca Picture Props for long term working capital. Pinacoteca specializes in arts and décor rentals for film, television, commercials and theatre productions. Their inventory consists of period furniture and decorative items, dating back to mid 1900s. In addition, they also provide professional custom framing and also sell arts supplies and cleared art.
Pinacoteca Picture Props was established in 1997 and is jointly owned and managed by John and Tija Patrick, a husband and wife team. The couple together has over 20 years of industry experience. Their long-term relationship with various producers and set designers has helped grow Pinacoteca. In addition, acquisition of smaller prop houses, including the customer lists, has enabled them to expand the business services and customers. |
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The company has a stable financial position with growing sales. However, due to the seasonality of the industry, the lender approved Pinacoteca’s financing request, subject to the SFV-FDC’s guarantee.
As you already know, if a loan request does not meet one or more parameters in the Bank’s credit policy then the Bank is usually not able to extend credit to that borrower. However, if a guarantee is provided, then the Bank’s exposure is minimized and approval of the request now becomes possible.
In this case, First Federal Bank by approaching us and asking for a State Loan Guarantee was able to approve the loan and retain their banking relationship.
Do you currently have a package that needs a State Guarantee to make your bank more comfortable? Then send it to us or call us at 818-834-9860 to determine if a state guarantee will help your client get the financing they need. |
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Mark your Calendars! |
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About SFV-FDC |
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Our mission is to provide an effective vehicle for guaranteed lending through the California Small Business Loan Guarantee Program to small businesses in the San Fernando Valley, North Los Angeles and Eastern Ventura Counties. |
The California Loan Guarantee Program enables a small business to obtain a term loan, line of credit, or letter of credit when it cannot otherwise qualify for a loan. The Office of Small Business administers the program with the primary objective of creating and retaining jobs, as well as providing a service to small businesses.
The program provides a lender with the necessary security, in the form of a guarantee, to approve a loan or line of credit. The guarantees are issued on behalf of the state by any of the non-profit corporations throughout California. These offices are called Small Business Financial Development Corporations (FDCs).
To learn how to make a deal work for you and your client, call Antonio
Pizano at (818) 834-9860 or check us out online at http://www.sfvfdc.org.
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SFV-FDC: 12502 Van Nuys Blvd., Suite 119, Pacoima CA 91331 818.834.9860 tel * 818.897.8007 fax * http://www.sfvfdc.org
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