LCD Micro-Loan Program
LCD is an incomparable proponent of the small business community that provides technical assistance both during the application process and throughout the life of the loan, to further the success of the business, while developing the business' ability to acquire future financing.
An extremely successful tool designed to meet the needs of these clients was co-developed by Nor-Cal and LCD and is called the "credit-builder" program. It incrementally disburses funds to the borrower upon demonstration of satisfactory payment performance and business development milestones, with up to a $10,000 threshold.
Typical credit builder loans are issued at a 100% Collection Guaranty. Once eligible, borrowers can progress to a Micro Loan of up to $25,000 or a regular loan of up to $100,000 with varying guaranteed portions.
Currently, the default rate for LCD guaranteed loans is under 1.5%.