By guest authors Irina Patterson and Candice Arnold
Irina: What kind of support do you offer to your entrepreneurs with funding?
Mark: I mentioned before that Pasadena Angels are a resonance to our incubator. They do their screenings here. They do their due diligence sessions here. They do the prescreening sessions here.
We also have a special loan program geared for our clients, where they are eligible – again, the key word is eligible – to receive up to $200,000 in loan money. We are currently lending at 6% fixed, and for a startup company that’s very, very inexpensive. And of course we are looking at collateral and personal guarantees on those loans. The process is very similar to an SBA loan.
They can apply any time. But we need to know that we are going to be repaid, just like any lender. It is not a grant. A lender is looking at cash flow. He is looking at the ability to repay and, of course, security for the loan. Look at it as a three-legged stool. Get the character. If they’re in the incubator, you assume the character. You need the cash flow, and you need the collateral. Usually, home equity is the collateral.
Irina: Thank you, Mark. This has been very interesting.