PCAP Underwriting
Partner Community Capital is a community development financial institution, meaning we are a mission-driven lender. Read more about what we look for in a loan application.
What We Look For:
Community Impact: PCAP prioritizes projects that have a positive impact on the community. We specialize in lending to businesses and nonprofits that create quality jobs, retain jobs, offer essential community services and/or build family wealth in depleted communities.
Cash Flow: We need to feel confident that your business has/will have enough income to comfortably cover your PCAP loan payments in addition to your regular expenses. We look at tax returns, profit & loss (income) statements, bank statements, balance sheets, and cash flow projections to determine if your business/nonprofit has an appropriate debt service coverage ratio. This means that we must ensure that your business can pay for regular expenses, your PCAP debt payment, and have enough money leftover to cover unexpected expenses every month.
Capacity: We want to know that our borrowers and their project team have the sector knowledge and management experience needed to successfully start, grow, and sustain the business. We also look at borrowers’ history of repaying debts.
Collateral: We need collateral to secure all business loans. Real estate, inventory, vehicles, and personal assets are all examples of collateral. If you and your business don’t have enough collateral to secure the loan, chat with the lender in your area about options. We may be able to use a guaranty or specialty loan program to mitigate lack of collateral. Please note: We expect all individuals with 20%+ ownership to personally guarantee the loan.
