Pacific Community Ventures business loans review
Competitive financing for California businesses struggling to qualify for traditional loans.
finder.com’s rating: 3.8 / 5.0
Pacific Community Ventures (PCV) is a local lender that specializes in providing financing to small businesses that struggle to qualify for a business or SBA loan. You’ll find no credit or revenue cutoffs, and its maximum interest rates are lower than where some business lenders start. But it requires a personal guarantee from all owners and doesn’t work with startups.
First, do I qualify?
Your business must meet qualifications that include:
- A business location in California.
- At least one part-time or full-time employee.
- At least one year in business.
What is PCV?
PCV is a nonprofit community development financial institution (CDFI) with a mission to provide support to underserved businesses in California. It offers loans from $10,000 to $200,000 that small businesses can use for any legitimate purpose, including working capital, buying inventory or even acquiring another business.
Interest rates range from 7% to 13%, and terms run from 1 year to 5 years. PCV also charges a 1% to 5% loan fee before you get your funds, taking the APR range to 8.87%–22.39%.
What makes PCV business loans unique?
While any business that meets PCV’s requirements can apply for a loan, its mission is to provide affordable financing to small businesses having a hard time qualifying for traditional loans or SBA-backed funding.
PCV doesn’t require a minimum credit score, though it runs a credit check on each owner with more than a 20% stake in the company. Even if you don’t get approved, even applying may be worth it: It either refers you to a partner lender that can offer you funding or connects you with a business adviser that can help you strengthen your application.
What are the benefits of a PCV business loan?
- Competitive rates. With APRs from 8.87% to 22.39%, PCV might offer one of the best deals out there for business owners struggling to find financing.
- Collateral optional. You don’t need to put up equipment, real estate or other business assets to qualify for this loan. But you can if you think it will strengthen your application.
- All credit types welcome. PCV doesn’t require a minimum credit score, though it checks the scores of all business owners.
- Advising program. PCV offers free small business advice to help your business continue to grow.
What to watch out for
- Only available in California. PCV is a local CDFI that serves business owners in the Golden State only.
- Must be profitable. This lender only works with businesses that are cashflow positive and doesn’t work with startups.
- Personal guarantee. Everyone who owns 20% of the business or more is required to personally guarantee the loan, meaning they’re partly responsible for repaying it if the business folds.
- Closing fee. In addition to interest, PCV charges a fee of 1% to 5% of the loan amount before your business gets the funds.
- Not ideal for emergencies. It can take 24 hours to get a response from PCV after you submit your preapplication and another one to three days to find out if you’re approved.
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What does the Internet say about PCV?
Almost nothing as of October 2018. PCV doesn’t have a page on Trustpilot. And because this lender is a registered nonprofit, the Better Business Bureau (BBB) considers it a charity and doesn’t offer a place for customer reviews — though it is accredited with the bureau and meets its standards for charities. It has a Yelp page, but no reviews to speak of.
This isn’t necessarily a bad sign. Although PCV has 20 years of experience working with small businesses, it only works with a small group of business owners.
How do I apply?
You can get started on your PCV application online, though you’ll need to speak with a representative by phone if you’re preapproved. Before you’re ready, make sure that you meet PCV’s eligibility criteria.
- At least one year in business
- At least one part-time or full-time employee
- Operates in California
- Profitable business
Steps to apply
- Go to the PCV website and click Get Started.
- Scroll and click Get Funded.
- Scroll and click Get Pre-Approved.
- Complete the preapplication’s required fields and review your answers before submitting it.
- Wait for a PCV representative to call you to discuss your options, typically within 24 hours.
- Submit required documents and any additional information.
- Wait for PCV to get in touch with a response, usually within one to three business days.
- Receive your business’s funds.
How to apply step-by-step with screenshots
What documents do I need to apply?
PCV might ask to see the following documents from applicants:
- Two years of financial statements
- Income statement
- Balance sheet
- Personal financial statement
- Business’s lease agreement
- Documents from other business loans
- Debt schedules
- Financial projections
I got a business loan from PCV. Now what?
Now that you have your loan, your business is free to spend it as planned. PCV asks businesses to sign up for automatic repayments, so you won’t need to worry about remembering to make a repayment each month.
Keep an eye on your business bank account and loan balance. If you have any questions, call 415-442-4300 as soon as possible.
PCV’s business loans could be a resource for businesses struggling to qualify for traditional or SBA financing. But the lender’s limited reach in California and long turnaround means it’s not for everyone.
Curious about business loan options? Read our guide to business loans, where you can compare lenders and learn how financing works.
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