How does the Collateral Support Program (CSP) work?
A small business applies for an loan with one of our lender partners listed below and tells them they are interested in the CSP program. The lender will first review the application under conventional criteria. If the lender finds the collateral is lacking, they will evaluate the loan request and see if it qualifies for the CSP. If it does, you will be asked to sign two program participation certifications and pay a program participation fee. The CSP only provides collateral support for bridge loans with reasonable expectation of payoff within 18 months.
What are the benefits of CSP for Small Business Owners?
- Encourages lenders to provide short term loan approvals to small businesses that might otherwise not qualified due to lack of collateral.
- Gives a business another chance for loan approval if they previously were rejected due to insufficient collateral.
- Allows a business to keep its relationship at its current bank.
- May be combined with the Linked Deposit Program through the Office of Minority and Women Business Enterprises, which may result in lower interest.
Who can participate in CSP?
Most small business types are allowed to participate in the CSP.
Are there types of loans that do not qualify?
Most SBA 504 loan purposes qualify for the Collateral Support Program. There are a few purposes that make a loan ineligible for enrollment in the CSP, including certain speculative activities and passive real estate investment, repayment of delinquent taxes unless a payment plan is in place with the taxing authority, and reimbursement of any funds owed to the owner or equity injections by investees. Please talk to your lender to see if your business needs qualify.
What types of loans can my business get?
Business term loans and lines of credit which may include:
- Acquisition of a place of business
- Construction, or renovation of a place of business
- Working capital
- Acquisition, construction or renovation of a place of business
- Franchise fees
How do I apply for a loan?
You may apply for a loan with one of our lender partners listed below and tell them you are interested in the Collateral Support Program, or you may ask you current bank if they are a participant:
Tony Fyrqvist, Vice President & Relationship Manager
Rosendo Guizar, VP Business Banking Division
Baker Boyer National Bank
Coastal Community Bank
Bank of the Pacific
Mountain West Bank
*There are no CSP application forms to complete
CSP for Lenders
Links and Resources
Frequently Asked Questions
Q: Does the Collateral Support Program offer grants?
No, CSP is strictly a loan program.
Q: Can I get a loan longer than 18 months?
Q: How much are the program fees?
The fees range from 2-3% of the CSP amount being provided. Your lender can quote you an exact fee.