CDC Small Business Finance, the San Diego-based not-for-profit lender, has received a $150,000 grant from the MUFG Union Bank Foundation to provide advising services to small businesses.
The multi-year grant will be dispersed in $50,000 increments through 2019, CDC said in a statement.
“Focused advising can help underserved, diverse small business owners get their financial house in order so they’re able to acquire new capital to grow their companies and create new jobs,” said Robert Villarreal, executive vice president with CDC Small Business Finance.
Advising services will be available before and after a small business applies for a loan from CDC or other lenders.
Villarreal said CDC estimates the grant will allow the company to provide advising services to 600 small businesses, which CDC projects will create 2,000 jobs.
The company forecasts the small businesses it advises will be able to qualify for $28 million in financing by 2019.
“Many of the small businesses we advise will have a similar story of struggling to qualify for a conventional bank loan,” Villarreal said. “Our objective will be to show them how to create new efficiencies and strengthen their credit so they can secure new financing for growth.”