Our alternative approach to financing allows us to invest in small businesses that other lenders overlook — regardless of their size or industry. We lend flexible, patient capital and tailor financial solutions to meet entrepreneurs where they’re at.
Financing for businesses in California
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We provide entrepreneurs $5,000 to $500,000 in debt capital to launch, operate, or grow their business. Our interest rates are fixed and are based on the prime rate set by the Federal Reserve plus 4% to 6%. We offer financing on 5- to 7-year terms.
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Borrowers can be from any industry and at any stage of their business’s life cycle — from start-up to mature. AltCap California focuses its capital deployment to entrepreneurs who have been overlooked by mainstream financial institutions. A Business Development Officer can help you decide if a loan is right for your business.
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AltCap California charges an origination fee of 5% depending on your loan amount. Other fees may include UCC filings, servicing fees, vehicle lien filings, or title recording fees.
To apply for a small business loan, you will be asked to provide the following documents:
Personal Documentation
•Two forms of ID (each signer) – One with a picture other with a name only
Business Documentation
• Business Plan (if the business is under one year in operation)
• EIN (Tax ID) Form
• Articles of Organization / Incorporation
• Certificate of Status from the CA Secretary of State
• Operating Agreement (for LLC) or By-Laws (for Corporations)
• Business Insurance/Liability Insurance
Financial Documentation
• Two years of personal tax returns including all schedules and 1099s
• Income Statement, Balance Sheet, and Cash Flow Statement (projections)
• Business Debt Schedule
• Last three months of personal and business bank statements. Startups should provide a business plan and financial projections in lieu of historical financial statements.
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Para obtener asistencia en español, comuníquese con David R. Desai-Ramirez al (424) 345-7077 o david@altcap.org.
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If you have an existing AltCap California loan and have questions about your loan terms or if you need to update your information, please contact Viva Young at (833) 549-2890 or viva@altcap.org.
If you need to make a payment on your existing loan, please contact Viva Young at (833) 549-2890 or viva@altcap.org.
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If you are ready to begin the process, select the Begin Loan Process button below and follow the directions to submit an Intake Form.
Small business owners who have questions about the process should a Business Development Officer at info@altcap.org or (424) 345-7077.
Financing Products
Small Business Loans
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AltCap California’s Small Business Loans are between $50,000 and $500,000 and are designed for any small business, in any industry, and at any stage of growth.
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Loans between $35K - $500K
Businesses of any size and any stage
5-year loan terms
Origination fee of 4%
Our interest rates are fixed and are based on the prime rate set by the Federal Reserve plus 4% to 6%.
Revenue Based Financing
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Revenue-based financing is a way that small businesses can raise capital by pledging a percentage of future ongoing revenues in exchange for money loaned.
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Every agreement is uqniuqe
Loans up to $500,000 — typically sized at up to 1/3 of the previous year’s revenue.
Monthly loan payments tied to monthly revenue — up to 8% of sales.
Total repaid 1.4x to 1.5x times of the original loan amount.
Borrower has up to 7 years to repay the loan .
Either no personal guarantee OR no collateral required.
Microloans
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AltCap California’s microloans are between $5,000 and $50,000 and are designed for any small business, in any industry, and at any stage of growth.
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Loans between $5,000 and $50,000
Expedited processing
5-7 year loan terms
Origination fee of 4%
Our interest rates are fixed and are based on the prime rate set by the Federal Reserve plus 4% to 6%.
Frequently Asked Questions
What if I’ve been denied by another lender?
As a nonprofit, mission-driven lender, AltCap California can often overcome traditional lending constraints. Challenges like previous denials, credit scores, bankruptcy, and limited collateral, may be overcome by other positive aspects of your business, like community impact, additional guarantors, or other sources of revenue. We’ll work to understand your needs and create solutions to help you grow your business.
Does AltCap California lend to startups?
Yes. We lend capital to small businesses regardless of their industry, size, or stage of growth. Owners of startups will be asked to provide a business plan, financial projections, and other documentation in lieu of historical financial statements.
When will I receive my funds?
Our goal is to provide capital in a timely manner. AltCap California aims to fund your loan no more than 30 days from application submission. Questions or challenges may arise as we review your documents, and it is critical that you provide a timely response to keep the analysis and underwriting process moving.
What if I have a low credit score?
We work with you to understand the circumstances of your credit and evaluate it alongside your financials, management abilities, and growth potential. We can tailor terms to each entrepreneur’s situation and are more flexible than traditional lenders and banks.
How much may I request?
AltCap California can provide entrepreneurs $5,000 to $500,000 in debt capital to launch, operate, or grow their small businesses. Proceeds may be used to fund equipment, marketing, payroll, services, capital expenses, and other working capital purposes. The amount you can borrow will depend on your capital needs and your ability to cover the debt service.
Do I need collateral for my loan?
Collateral is not always required of our borrowers but providing collateral may help you access better loan terms or larger loan amounts. Discuss your collateral options with your Business Development Officer. UCC’s are required for all business loans.
Can I apply if I have an existing loan?
Yes. We understand that your business has unique needs and while you work hard to be resourceful, challenges can arise. We are here to be a long-term partner as you grow or have new needs. We will accept applications from businesses with up to two active loans and at least six months of payment history. Our team will work with you to assess your ability to take on new debt and what collateral may be available to support your needs.
Is AltCap California a bank?
No, AltCap California is a nonprofit, mission-driven lender. We partner with banks (which make investments into AltCap California to fund the work that we do) but are not a bank.
What other services are available?
In addition to accessible capital, AltCap California provides other business support and services to our clients. We also collaborate with other lenders and business advisors to provide you with the support you need to start, grow, and sustain your business. Talk to your Business Development Officer about your options.