Details on the Small Business Administration’s new 7(a) Manufacturer’s Access to Revolving Credit (MARC) loan program that offers small business manufacturers working capital, the SBA line of credit program, options for non-bank qualified small businesses, and tips on how to get out of bad fintech or merchant cash advance (MCA) loans are topics on this week’s free webinar when Scott Rogalski, deputy director of the Northern California SBDC Finance Center joins host and SBDC director Kelly Bearden.

This marks the 363rd episode of the “Webinar Wednesday” business series that provides news and information to employers and business owners.

The CSU Bakersfield SBDC provides free one-on-one help to small business owners. New and existing businesses can go to https://csubsbdc.com/ for more information or to sign up to meet with a business advisor at no cost.

TIMESTAMPS

00:00 Intro

00:33 What’s up today October 22, 2025

02:21 Poll question #1: “What type of financing does your business currently need most?”

04:09 Poll question #2: “How familiar you are with SBA loan programs?”

05:28 Poll question #3: “In 1969, at the Woodstock Festival, the Grateful Dead covered a song from which great country western artist?”

8:55 Capital Corridor – What are the terms of your internet-based loan?

9:59 What APR is Your Fintech Charging? Example illustrates the impact of prepaid interest and early repayment on APR.

– A $50,000 loan with $23,456 in prepaid interest over a 20-month term, amortized daily, results in an initial APR of 49.49%.

https://www.calculator.net/loan-calculator.html

12:29 Economic Corner – SBA loan concerns and economic outlook Impact of Federal Shutdown and EIDL Loans

• Businesses with EIDL loans from the COVID era are advised to address payment issues proactively.

• A workout plan with the SBA may be an option for those struggling with payments.

• Defaulting on EIDL loans (30-year term at 3.75%) can lead to the SBA demanding full repayment.

• Debt forgiveness for EIDL loans is not anticipated, with stronger enforcement being the likely approach.

• EIDL loans can be assumed by new buyers when selling a business, which can be an advantage for both parties, subject to SBA approval.

16:11 Subscribe to our CSUB SBDC YouTube Channel https://www.youtube.com/@csubsbdc

18:51 Kelly introduces Scott Rogalski, Deputy Director of Northern California SBDC Finance Center

20:18 Scott begins to speak

20:30 Scott begins his presentation

22:41 SBA Common Loan Products

• SBA 7A: Most used for working capital (payroll, rent, operations). Funding typically takes 30-120 days.

• SBA 504: Most common for real estate or large equipment, requiring only a 10% down payment.

• Community Advantage Loans: Up to $350,000, offered by non-bank non-profit lenders, aggressive with startup financing.

• Micro Loans: Under $150,000, often through CDFIs, easier to qualify for, faster, decent rates, and less stringent credit score requirements.

24:54 New Manufacturers Access to Revolving Credit (MARC)

• For manufacturers (NAICS codes 31-33).

• Loans up to $5 million with 75-85% SBA guarantee.

• Revolving loan, extendable up to 20 years (convertible to a 10-year term).

• Funds can be used for working capital.

27:16 Working Capital Loan Program (WCLP)

https://www.sba.gov/partners/lenders/7a-loan-program/7a-working-capital-pilot-program

• Revolving line of credit for businesses engaged in B2B or government contracting.

• Addresses payment delays from government entities (30-180 days).

• Up to $5 million with a 75% guarantee.

• Loan maturity up to 5 years (60 months).

29:34 Working Capital Loan Performance

30:20 Which Product is Best for You as a Small Business

SBA link to loan programs: Express, MARC, 7(a), and more

https://www.sba.gov/partners/lenders/7a-loan-program/types-7a-loans

• Open Revolving Line of Credit: SBA Express or MARC (for manufacturing).

• Line of Credit Secured by Fixed Assets: SBA Express Working Capital Line.

• B2B Driven Line of Credit: MARC or Working Capital Loan Program.

• Project Specific: SBA Express or Contract Capital Line.

31:42 California Loan Guarantee Program https://www.ibank.ca.gov/small-business/loan-guarantees/

• State guarantee similar to SBA but more flexible for lenders and borrowers.

• The California state program is a counterpart to SBA 7A, backed by the state rather than SBA.

• Can refinance “bad” fintech loans or merchant card advances, which SBA no longer does.

32:54 State Small Business Credit Initiative (SSBCI) https://www.ibank.ca.gov/small-business/ssbci/

-Federal program providing $1.2 billion to California.

35:36 Options for the Non-Bank Qualified – Alternative Lending Options

35:56 Credit Card Stacking

36:59 Invoice Financing/Factoring

37:27 Collateral-Based Lending (Hard Money Lenders)

38:25 401k/IRA to C Corp Transfer Rollovers as Business Startups

– Webinar Wednesday 357 with CPA Mickey Parker on using a 401(k) and more https://youtu.be/2Yr0lAYuTp4

45:45 Online Aggregators/Matching Tools

48:20 Kelly rejoins Scott for Questions and Answers with Attendees