Frequently Asked
Questions
First Community Capital is a minority-led small business lender offering a diverse range of loan products, including small business loans and consumer/personal loans.
No. First Community Capital is a non-profit community development financial institution, certified by the U.S. Department of Treasury. We are CA Lender Licensed by the California Department of Financial Protection and Innovation (DFPI).
First Community Capital is headquartered in Riverside, Southern CA, with satellite offices in Los Angeles and Murietta. We currently provide financial services and technical assistance throughout Riverside, San Bernardino, San Diego, and Los Angeles counties.
First Community Capital currently offers several loan products:
1. Consumer Loans up to $2,500,
2. Startup Loans up to $5,000,
3. BIPOC Loans up to $10,000,
4. Microloans up to $50,000.
First Community Capital interest rates range from 6.00% to 14%, depending on the overall strength of the individual and business. A 1% discount is available for consumer loans for those who sign up for ACH. Consumer loans currently have lower interest rates between 6.00% - 8.00%.
First Community Capital loan terms range from 6 months to 60 months. The loan amount approved, type of loan, and risk factors determine the loan term.
Yes. We work with start-up businesses. Applicants must have another source of income, show repayment ability, and have experience in the industry.
First Community Capital considers a business to be a start-up if it has not generated revenue or generated revenue for less than six months. A business plan, a minimum of 12-month financial projections, and a steady source of income are required to qualify for this product. The business must be a registered legal entity.
First Community Capital's offer will depend on your capacity to make the monthly loan payments and the purpose of the loan. If you do not qualify for the amount you are requesting, we may offer you a lower amount if it works for the determined purpose. The loan application provides a field where you can state the minimum amount you require.
First Community Capital does not have minimum credit score requirements. Applicants must be current on their credit and show the capacity to make the monthly loan payments.
Once the client file is complete with all the required documentation, it will take about three days to be approved and disbursed.
First Community Capital disburses the funds within 24-48 hours after the signing of the loan documents.
Closing costs are typically around up to 5% of the loan amount.
No, First Community Capital closing costs for our regular loan program are not financed into the loan and are due when the loan documents are signed. We collect them before the loan funds are disbursed.
First Community Capital does not require collateral on loan requests below $10,000; however, pledging a paid-off vehicle as collateral may provide strength and be a mitigating factor on a particular loan request. First Community Capital requires 20% collateral coverage in the form of paid-off vehicles for loan requests of $10,000 and above. First Community Capital customarily files UCC-1 on all business assets once the loan is disbursed.
It depends.
No. First Community Capital only provides term loans.
Yes, First Community Capital has a consumer loan product up to $2,500.
No. The State of California Guaranty program guarantees 80% of First Community Capital loans, not the SBA. Loans below $15,000 are enrolled in the California Capital Access Program loan loss reserve. The SBA is not a lender but a federal agency that provides loan guarantees.
Yes. First Community Capital assists potential and existing clients with credit and budgeting through our partners. Ask your First Community Capital representative how to enroll in this service.
Yes, First Community Capital reports to Experian to assist our clients in establishing or rebuilding their personal credit history. We do report to the Business Credit bureau, and First Community Capital loans do not help build business credit.
Due to our agreement with the state guarantee program, First Community Capital cannot lend to liquor businesses, tobacco or cannabis-related businesses, adult entertainment, gambling, and businesses related to war and weapons. Additionally, due to organizational policy, we do not lend to art galleries, car dealerships or rental, commercial brokers and lenders, real estate investments, nonprofit organizations, short-term vacation rentals, and businesses related to animal reproduction.
First Community Capital receives funding from banks, Federal, State and Local Government, Private Foundations, and Corporations.
Yes. First Community Capital offers direct technical assistance and through our partnerships with the Small Business Development Center (SBDC) and SCORE. They provide free one-on-one business counseling to clients and interested applicants virtually via Zoom. First Community Capital staff also provides basic financial, business, and credit training to its clients. In addition, First Community Capital hosts free educational webinars throughout the year and two eight-week business training programs in English and Spanish for entrepreneurs, First Community Capital Cohort.
First Community Capital interest rates are fixed and based on the overall strength of the applicant. We seek to give access to capital for those who may not qualify through traditional financing institutions for reasons such as lack of credit history, collateral, or business operating history. Our rates may be higher due to the smaller loan sizes we provide and the additional risk we take on our loans. They are competitive in the marketplace.
The paid principal of the loans recycles directly back into our loan fund to provide another loan. The interest and administrative fees paid on the loan are used for our program administration. We are also awarded grants from the Department of Treasury, banks, foundations, and individuals specified to supplement our program costs.
First Community Capital has relied on very little advertising and focuses mainly on grassroots marketing and establishing relationships within the community. Many clients are referred to our program by community organizations, current or past clients, or banks. First Community Capital staff does its best to be present at as many community events and meetings where we can reach potential clients and get the word out about our services.
Repayment rates have historically been 93-97%. First Community Capital's holistic and hands-on approach and the relationships we build with our clients help maintain a high repayment rate.