EAST LOS ANGELES, Calif.--(BUSINESS WIRE)--Pan American Bank today announced that it has been certified as a participating lender under the California Capital Access Program (“CalCAP”) – a program of the California Pollution Control Financing Authority (“CPCFA”).
“The CalCAP Program allows Pan American Bank to make loans to small businesses that fall just outside of conventional underwriting standards due to a lack of adequate collateral coverage. The CalCAP Program provides Pan American Bank with the collateral needed to shore up great small business applications that simply lack adequate collateral,” said Pan American Bank CEO Jesse Torres. “Many small business owners maintain successful businesses but lack the collateral needed to pledge against a loan or line of credit. Through the CalCAP Program these successful businesses can obtain the financing needed to achieve their business objectives.”
CalCAP works to assist small business owners that cannot obtain financing through conventional methods. Through the CalCAP Program the borrower applies for a loan and is considered for CalCAP if the loan request meets the Bank’s existing lending criteria (with the exception of the adequacy of collateral). The CalCAP program acts as a collateral enhancement through the State’s establishment of a cash-secured account in the amount of collateral needed to have the loan request approved. There is a fee paid to the CPCFA in connection with an approved CalCAP application.
Loans can be used for:
- Start-up costs;
- Working capital;
- Business procurement;
- Franchise fees;
- Purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real estate investment purposes;
- Energy efficiency/environmental improvement projects; and,
- Bridge loans needed prior to obtaining permanent financing (including SBA 504 bridge loans).
There are limitations on loan refinance transactions. The primary business and 50% of employees, or income, sales, or payroll must be located in California. Eligible businesses must have fewer than 500 employees. Most small businesses and nonprofits with paid employees qualify for CalCAP (participation requires Bank’s approval of the loan application).
Established in 1964, Pan American Bank is California’s oldest Latino-owned bank and the second-oldest Latino-owned bank in the United States. Headquartered in East Los Angeles, Pan American Bank has served the needs of the Latino communities in Los Angeles and Orange counties for nearly a half-century. Founded by the first Latina United States Treasurer, Romana Acosta Banuelos, the Bank has stayed true to its mission of transforming and empowering Latino communities through banking relationships built on trust, service, respect, communication, and guidance. Pan American Bank is an approved SBA lender and a Community Development Financial Institution (“CDFI”). Pan American Bank is a member of the FDIC and an Equal Housing Lender. Pan American Bank is located at 3626 East First Street, Los Angeles, CA 90063.