COVID-19 Relief Loan Product – Accion serving Southern California

Thanks for connecting with Accion serving Southern California for your business needs. This office serves Imperial, Riverside, San Bernardino and San Diego counties in California.

 

Accion is currently administering two COVID-19 relief products; one through the Wells Fargo Open for Business Fund focused to support racially and ethnically diverse entrepreneurs and the other through the California Rebuilding Fund.

 

If you are interested in a start-up or expansion loan (not COVID- 19 relief related), please fill out the form below to be connected with a business development officer to start the application process.

 

 

Read this info page to learn more.

 

Accion is a nonprofit lender with a 25-year history of serving primarily low-to-moderate income entrepreneurs, entrepreneurs of color, female entrepreneurs, start-ups and others who may lack access to traditional forms of credit. We are dedicated to empowering entrepreneurs by providing training, resources, and access to business loans.

 

Accion serving Southern California is responding to the COVID-19 pandemic’s impact on small businesses by offering low-interest relief loans and support services. See below for more information.

 

Product Details

Accion COVID-19 Relief Loan Eligibility Requirements

Both COVID-19 products require:

  • The business to be located in San Diego, Imperial, Riverside and San Bernardino counties
  • A current source of income (i.e. business, job, unemployment, spousal income)

Wells Fargo Open for Business Fund to support racially and ethnically diverse entrepreneurs:

  • Term loans from $5,500 to $35,000 for COVID-19 impact relief
  • To use for working capital to cover rent, utilities, payroll, insurance or any other business needs due to adverse COVID-19 business impact
  • Interest Rate: 2.99%
  • Term: 36-60 mos. including first 6 mos. with no payments
  • A grant to cover upfront fees
  • No out-of-pocket costs and no prepayment penalties
  • Complimentary business technical assistance (and/or financial) coaching session

Eligibility Requirements

  • Business must have been negatively impacted by COVID-19
  • Business owned by a racially or ethnically diverse entrepreneur
  • Be in business prior to Aug. 31, 2019
  • Acceptable personal credit report to include (but not exclusive):
    • Minimum Credit Score of 500 (No Credit Score is OK)
    • No bankruptcy or foreclosure within last 3 years
    • No open liens or judgments (payment plans of at least 6 mos. OK)
    • No delinquent child support

California Rebuilding Fund:

  • Term loans from $2,000 to $50,000 for COVID-19 impact relief
  • Interest Rate: 4.25%
  • First 12 months interest-only; up to 60-month total term
  • Fees:
    • $0 on loans up to $5,500
    • $250 on loans $5,500 and above
  • No pre-payment penalties

Eligibility Requirements

  • Be in business on or before June 30, 2019
  • Must fill out pre-application on caloanfund.org
  • Maximum $250,000 in gross business revenues last year per stated on the caloanfund.org pre-application
  • Demonstrate at least a 25% decline in revenues since January 2020 due to COVID-19
  • Returned to or has sustained at least 30% of pre-COVID-19 crisis revenues relative to a similar period the prior year
  • Acceptable personal credit report to include (but not exclusive):
    • No repossession or foreclosure within last 3 years
    • No open liens or judgments (payment plans of at least 6 mos. OK)
  • No delinquent child support
  • No minimum FICO score required

Click the button below for more information and to start the pre-application process on www.caloanfund.org.

GET THE PROCESS STARTED

COVID-19 Relief and Recovery Loan Product: Loan for racially and ethnically diverse entrepreneurs

Through Wells Fargo Bank grant

California Rebuilding Loan
Link to apply https://us.accion.org/get-a-loan/#/step-1-2 www.caloanfund.org

*If you have questions regarding your eligibility, fill out the Contact Us form.

 

If you do not meet the minimum requirements above, Accion is still committed to helping your small business access support during this challenging time with the resources we have compiled on this page. We also recommend visiting the California Association of Micro-Enterprise Organization’s list of other lending institutions in your area. Select “Yes” for Microlender.

How to Prepare

  • Once we receive your application and you pass the credit check, we will request the following documents. Please have them ready so that we can process your loan request as quickly as possible.
  • Driver’s License or Government issued Photo ID (e.g. Passport)
  • Access to 3 Most Recent Personal Bank Statements (see note below)
  • Access to 3 Most Recent Business Bank Statements (see note below)
  • 2019 Business Tax Return
  • 2019 Personal Tax Return
  • COVID-19 Impact and Recovery Plan (Accion form will be provided)
  • Bank account information for loan funds disbursal (Form provided by Accion for direct deposit and 1st page of bank statement for account verification – account name must match business legal name)

 

Please Note: To make this process fast and efficient, we will request access to your bank account transactions using a secure portal. If you are not currently enrolled in online banking for your business and personal bank accounts, or if you do not remember your username and password to your online accounts, we will refer your application to our partner, the Small Business Development Center, for assistance with loan packaging and collecting the required documents to complete your loan file (including your bank statements).

1) How long will the process take?

The online application takes approximately 15 minutes. We will review your credit report and if you qualify, will request the required documents to complete your loan file within 48 hours of receiving a complete application. Once your documents have all been submitted, it will take 1 week or less to get a final decision on your loan request.

 

Please note: the stage that takes the longest is when we are waiting to receive all the required documents from you. To expedite this process, please gather your documents in advance or as promptly as possible once requested.

2) How much can I apply for?

Accion’s COVID-19 relief business loans range from $1,000 to $50,000 and are approved based on multiple variables, while also considering the economic impact of COVID-19 on your business. Our loan application will ask you to enter a loan amount range including ideal loan request and minimum loan size requested so that we can ensure that you will receive enough capital, if approved. The loan sizes will take into consideration gross sales from 2019 and your capacity to repay the loan.

 

Wells Fargo Open for Business Fund to support racially and ethnically diverse entrepreneurs:

  • Term loans from $5,500 to $35,000 for COVID-19 impact relief

California Rebuilding Fund:

  • Term loans from $2,000 to $50,000 for COVID-19 impact relief
3) If my business is currently closed due to mandatory restrictions, may I still apply?

Yes, you may still apply. We will ask you to complete a form called the COVID-19 Impact and Recovery Plan in which you can share with us ways in which you continue to generate income despite your business being currently closed. Businesses that continue to generate revenue, albeit less than when open full-time, are stronger loan candidates.

4) Do you require collateral?

No, we do not require collateral for our COVID-19 relief business loans.

5) Am I eligible even if my business is not profitable yet?

The business must show profitability in the 2019 business tax return or 2019 year-end financial statements in order to demonstrate loan repayment ability.

6) What if we already received assistance from other sources?

Grant assistance is acceptable along with anyone who has received funding from the SBA’s Economic Injury Disaster Loan Program (EIDL) or Paycheck Protection Program (PPP).

Anyone who has secured financing from alternative lenders and are paying daily or weekly payments (or paying an APR of 30% or more) is not eligible for an Accion relief loan.

7) Do my business partners have to fill out an application as well?

Anyone with 20% or more ownership in the business must apply. The first owner to fill out the application can list their partners and an email will be sent to them inviting them to apply. We do not consider a loan application as complete until all partners have applied.

 

Please note: the co-borrower application is abbreviated and should take less than 10 minutes to complete.

8) Is there a prepayment penalty?

Accion does not charge prepayment penalties for paying the loan off before the term ends.

9) What is the minimum credit score?

Wells Fargo Open for Business Fund to support racially and ethnically diverse entrepreneurs:

  • Acceptable personal credit report to include (but not exclusive):
    • Minimum Credit Score of 500 (No Credit Score is OK)
    • No bankruptcy or foreclosure within last 3 years
    • No open liens or judgments (payment plans of at least 6 mos. OK)
    • No delinquent child support

California Rebuilding Fund:

  • Acceptable personal credit report to include (but not exclusive):
    • No repossession or foreclosure within last 3 years
    • No open liens or judgments (payment plans of at least 6 mos. OK)
  • No delinquent child support
  • No minimum FICO score required
10) How will this loan affect my credit report?

The Accion COVID-19 relief loan is a business term loan that will be reported on your personal credit report as a business loan that is personally guaranteed. That means that the business owner(s) are personally responsible to repay the loan even if the business cannot.

11) Who should I contact for questions throughout the process?

If you have questions before you apply, please fill out the Contact Us form on this page. If you have questions after you apply, you will receive emails from your dedicated loan processor and underwriter and can direct questions to them.

 

Please note: Due to the high volume of loan requests and our staff team working remotely, email is the best way to connect with Accion during this time. We will do our best to reply to your email within 24-48 business hours.

12) If I am approved for a loan, how will I sign the loan documents and receive my funds if your office is closed?

When a loan is approved, our loan documents will be emailed to be signed electronically. Once the loan documents are fully signed, the loan funds will be directly deposited into your business bank account.

 

If you have questions, please fill out this CONTACT US form and we will contact you via phone.

13) I currently have an Accion loan outstanding, can I still apply for a COVID-19 relief loan with you?
  • Must be in business prior to Aug. 1, 2019
  • Total of new loan + outstanding balance on active loan cannot exceed $50,000
    • If you have a $30,000 balance on your existing loan, the COVID-19 loan request cannot exceed $20,000.
  • Existing Accion loan may be currently restructured but the loan must have been current prior to the restructure
    • Accion has offered payment assistance in the form of restructured payments to existing clients impacted by COVID-19
  • Must have enough cash flow to cover current loan’s regular payment (if restructured) and new loan payment
    • If the existing loan has a monthly payment of $250 but is currently restructured at $125, client must show they can afford to pay $250 + the new loan’s monthly payment
14) Can my spouse and I both apply for a COVID-19 relief loan for both of our businesses?

We can only approve one loan per household.