What is the SBFDC looking for when determining whether to approve a request for guarantee?
The SBFDC has been allowed to establish its own lending criteria subject to certain limitations imposed by the State of California Department of Business, Transportation and Housing. Our policy was therefore based upon what we believe to be sound lending practices. Our assessment of acceptable risk however, is based upon a more liberal interpretation of the financial information provided. Our decision whether to extend a guarantee, and at what percentage of the gross loan is viewed in light of our mission which is to enhance the local economy and create jobs fostering economic development.
