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7(a) Loan Program
7(a) loans are the most basic and most used type loan of SBA's business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses. 7(a) loans are only available on a guaranty basis. The SBA does not fully guaranty 7(a) loans. Pacific Coast National Bank and SBA share the risk that a borrower will not be able to repay the loan in full. The guaranty is a guaranty against payment default. It does not cover imprudent decisions by the lender or misrepresentation by the borrower.
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Preferred Lender Program (PLP)
Pacific Coast National Bank has been approved by the Small Business Administration on June 27th, 2006 as a PLP Lender. The Preferred Lender Program, or PLP, is the top status that a lender can hold under the Small Business Administration 7a program. . Approval involves establishing a track record of exemplary performance in all areas of the SBA lending function. The designation PLP reflects the Agency's confidence that we have shown the ability to process, close, service and liquidate SBA loans in accordance with SBA policies and guidelines. It also requires that the Pacific Coast National Bank have an excellent rapport with the SBA office who issues the PLP status and that we demonstrate a strong commitment to SBA lending in their particular market area. Our PLP designation is a mark that we take pride in and strive to continue to merit.The Preferred Lenders Program (PLP) "streamlines" the procedures necessary to provide financial assistance to the small business community. Under PLP, SBA delegates loan approval, closing, and most servicing and liquidation authority and responsibility to these carefully selected lenders. This allows us to make SBA loans more quickly, as we are not required to include SBA in the credit origination process.
Because of the expanded authority and the expedited nature of the PLP program, certain loans cannot be processed under the PLP Program. As a result, Pacific Coast National Bank consistently consults SBA’s SOP, and or the PLP Loan Processing Center for these guidelines.
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SBA EXPRESS PROGRAM
Pacific Coast National Bank is also an approved lender under the SBA Express program. As an approved lender, the bank currently participates with SBA and has met certain portfolio performance standards. Loans made under this program generally follow SBA’s standards for Size, Use of Proceeds, Type of Business and Availability of Funds.
Maximum Loan Amount: $350,000
Revolving Lines of Credit: Generally speaking, our Express Lines of credit are authorized with a 5 year guaranty, renewable annually.
Interest Rate: The interest rate is negotiable. Rates are tied to the prime rate (as published in the Wall Street Journal) and are variable, but they may not exceed SBA maximums. SBA 504 Loan Program
The CDC/504 loan program is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.
Typically, a 504 project includes a loan secured with a senior lien from Pacific Coast National Bank covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped.
