Q. When will I receive the loan funds?
A. Disbursement usually occurs within a few business days after closing. If there are remaining conditions to be met, the loan will be partially disbursed until all conditions have been met. Your closing officer will confirm the expected timeline.
Q. How do I make loan payments?
A. The monthly repayment is processed via ACH and is due the 1st of the month.
Q. Will I receive a loan statement in the mail?
A. The monthly statement is sent at the end of the month via Loan Servicing to the designated primary contact’s email address on file.
Q. When is my first payment due?
A: In most cases, your first payment is due on the 1st the following month after your closing.
Q. Is my loan a variable rate or fixed interest rate loan?
A: All of our Community Advantage loans are SBA loans which are variable rate. Our other loans have fixed rates.
Q. Can I pay off the loan early?
A: Yes and we do not charge pre-payment penalties. For your SBA loan, if you plan to pay 20% or more, we request that you give us 21 days notice. Contact our Servicing Department at servicing@mainstreetlaunch.org to arrange this.
Q. How will this loan affect my credit?
A: We report to the commercial credit agencies including Dun & Bradstreet and Experian. We do not report to the consumer credit bureaus. On-time payments can help build your business credit.
Q. Who do I contact regarding my payment, credit reporting, etc. or if I have issues with repayment?
A. Contact our Servicing Department servicing@mainstreetlaunch.org.
Q. Are there post-loan support services available?
A: Yes. See a list of: Oakland Business Support Providers and San Francisco Business Support Providers. We also periodically offer business support workshops. Sign up for our newsletter here or follow us on Instagram and LinkedIn to find out about upcoming workshops.
Q. Do I need to report major business changes?
A: Yes. Notify our Servicing Department at servicing@mainstreetlaunch.org in the case of:
- Any changes of Ownership and Ownership Percentages
- Selling, Substitution, or Compromise of Collateral
- Removal, Assumption, or Substitution of Guarantor(s)
- Conversion of Entity and/or change of EIN
- Change of Business Model and/or Change of Business Name
- Change of Business Address
- Closure of Business
- Any additional adverse changes to the Business
Q. Will I need to provide reporting or documentation after my loan closes?
A: Yes. On an annual basis, you will be required to submit the following:
- Business and Personal Taxes
- Financial statements
- Proof of use of funds for tangible goods (for SBA loans–more info below)
- Job creation/retention reports
- Updated insurance policies and business permits
- Completed business survey
Q. What do I need to provide for the receipt collection of tangible goods financed through the loan, and will someone contact me? What if I don’t have all the receipts ready at the time of collection?
A. You will need to provide paid invoices or receipts for tangible goods purchased with your loan proceeds. Bank statements and credit card payments will not be accepted, as Main Street Launch needs to be able to verify what was purchased. The closing and compliance department will reach out 60 days after your loan has closed for the first time and will proceed to check in on a monthly basis until all receipts have been collected. Make the purchases for your business as needed, as there can be flexibility in Main Street Launch’s attempts for receipts as long as it is communicated to the team.
Q. What if I want to apply for additional loans or credit?
A. Please talk to us first. We want to make sure that taking on new credit won’t affect your ability to repay your existing loan with us. We may also have a product that better fits your current needs.
Q. What additional products or services do you offer?
A. Please email karla@mainstreetlaunch.org for information on our latest loan products and services.
Q. What does it mean to have loan fees financed via the loan?
A. When loan fees are financed through the loan, the fees are treated as a reduction of the loan proceeds and reduce the amount disbursed to you. Loan fees are the cost of borrowing, and an itemized list of fees can be found on the Commitment Letter or Closing Fee Receipt. Financing the fee means that the fee is part of the total amount that the client borrows. Therefore the disbursed amount to the client is the loan amount minus the fees.
Q. There is a job requirements clause on my Checklist for a Successful Loan document that I initialed. What does this mean? Am I required to hire right away?
A. During the application process, you provided the number of employees that you currently have and how many employees you hope to hire (if any). This clause is a good faith effort clause, and you will not be penalized for not hiring. You may be asked throughout the life of your loan to report on how many employees you have, but there is no requirement to hire a certain number of people.
Q. How is interest calculated on my loan?
A. For SBA Community Advantage loans, the interest is computed on a 365/Actual days elapsed between payment basis.
For other loans, the interest is computed on a 360/Actual days elapsed between payment basis.
Q. What should I do if I think I might have trouble making a payment?
A. Contact our Servicing Department at servicing@mainstreetlaunch.org. Please review our Client Guide: Late Payment and Default Implications for additional information.
If you have questions or require assistance on any compliance related item, please send an email with your inquiry to: compliance@mainstreetlaunch.org.