FAQs
Have a question? Look below to see if there is an answer to some of our most frequently asked questions.
What does OBDC stand for?
Oakland Business Development Corporation
How do I apply for a loan?
In addition to filing an application, an applicant must present:
- A complete Business Plan or detailed proposal to lend capital to increaee your revenue capacity.
- A complete Marketing Plan
- A complete Sources and Uses Budget (with quotes)
- Complete Personal Financial Statements - per borrower
- A copy of most recent year Income Tax Statement - personal and business
- Last Three Months Bank Statements - personal and business
- Copies of two forms of Identification per borrower (one picture ID)
- $25.00 Application Fee
- Copy of Lease Agreement or Letter of Intent to lease signed by owner.
How long does the loan process take?
The length of the process varies for each client, but a standard amount of time ranges from 6-8 weeks from when the application is submitted to when it is approved.
What percentage of loan applications is approved?
There are many different factors that lead to a variation in the yearly total, but approximately 33% of applications submitted are approved.
What is micro-finance?
Micro-finance refers to the field of lending that deals with small loans overlooked by traditional lending institutions such as banks. This field provides an excellent way for small business owners to make their business plans a reality while creating jobs for the community. Our micro-loans are $35,000 or less and as a guiding principle we look for every $35,000 to generate at least one employee or employment opportunity. We also provide business loans up to $250,000 in limited areas of Oakland that will create local employment or for capital improvement of commercial properties.
I have been turned down for a similar amount of money at a large commercial bank. Is there any hope of getting my loan approved through OBDC?
We welcome all loan inquiries, including those that were denied by other lending institutions.
What kinds of businesses are NOT funded by OBDC?
OBDC cannot fund liquor stores, adult businesses, real-estate brokers, lending companies, to applicants on probation or parole, non-profitorganizations or religious organizations.
Does OBDC offer any post-loan business assistance?
OBDC requests financial information after loans are made and provides businesses with referrals to organizations that will provide more in-depth business assistance.
Click here to go to a link where you can see a list of organizations that will help you with your post-loan needs.
I have no idea what I’m doing and this all sounds like gibberish to me. How do I get started?
If you are completely lost and have little to no knowledge of how a business is run, contact one of the two organizations listed below which will help you with all of your business planning needs.
- SCORE - Startup business counseling. (510) 273-6611. http://www.eastbayscore.org/
- East Bay SBDC - Existing Business Counseling. (510) 208-0410. http://www.eastbaysbdc.org/
What interest rates does OBDC charge?
OBDC offers a number of different loans with different interest rates with the rates ranging from 6%-11% fixed rates depending on risk level and the geographic location of the business.
Can I get a grant from OBDC?
OBDC does not give out grants. We give out loans.
What kinds of opportunities do you have for minority-owned businesses?
OBDC’s mission is to grow strong communities by providing financing and assistance to small businesses that provide employment, services and community benefit. We strive to be inclusive with all of our loans and to serve the diverse community of the Bay Area.