Best small business loans for cash flow in california is easier to understand when you have clear, practical guidance. This guide explains key costs, approval criteria, timelines, and lender expectations so you can compare options and choose the right path for your situation.

What Are Small Business Loans for Cash Flow?

Small business loans for cash flow are financial products designed to help businesses manage their day-to-day operational costs. These loans provide timely access to capital, ensuring that businesses can meet immediate financial obligations while pursuing growth opportunities.

Definition of Small Business Loans

Small business loans are funds borrowed from financial institutions or alternative lenders specifically for business use. They can be used for various purposes, including purchasing inventory, covering payroll, or managing operational costs. The terms, interest rates, and repayment schedules can vary widely based on the lender and the borrower’s creditworthiness.

Importance of Cash Flow

Cash flow is crucial for the sustainability of any business. It represents the movement of money in and out of a company, directly impacting its ability to pay bills, invest in growth, and respond to market changes. Positive cash flow ensures that a business can operate smoothly without financial strain, while negative cash flow can lead to severe operational challenges.

Types of Cash Flow Issues

Small businesses often face several types of cash flow issues, including seasonal fluctuations, unexpected expenses, and delayed customer payments. These challenges can disrupt operations and limit growth potential. Understanding the causes of cash flow issues is essential for effective management and planning.

Why is Cash Flow Important for Small Businesses?

Cash flow is vital for small businesses as it directly impacts their ability to operate and grow. Adequate cash flow allows for timely payments, investment in opportunities, and overall financial health, which are essential for long-term success.

Role of Cash Flow in Business Operations

Cash flow plays a central role in a business’s operations by ensuring that there are sufficient funds available for daily expenses. It enables businesses to purchase inventory, pay employees, and cover other operational costs without interruption. A healthy cash flow also allows businesses to take advantage of growth opportunities, such as expanding their product lines or investing in marketing campaigns.

Impact of Cash Flow on Growth

Having a steady cash flow significantly influences a business’s growth trajectory. When cash flow is stable, businesses can invest in new projects, hire additional staff, or upgrade their technologies. Conversely, cash flow problems can lead to missed opportunities and stagnation, making effective cash flow management essential for growth-oriented businesses.

Common Cash Flow Problems

Common cash flow problems for small businesses include late customer payments, seasonal sales fluctuations, and unexpected expenses. These issues can create cash shortages, leading to operational disruptions. Identifying and addressing these problems proactively is crucial for maintaining a healthy cash flow.

What Types of Loans Are Available for Cash Flow?

Various loan types cater to businesses aiming to improve their cash flow. Each option comes with unique features, benefits, and qualifications, making it essential for business owners to choose the right fit for their needs.

Short-term Loans

Short-term loans provide quick access to capital, typically needing repayment within a year. These loans are ideal for immediate cash flow needs, such as covering payroll or purchasing inventory. However, they often come with higher interest rates compared to long-term loans, so careful consideration is necessary.

Line of Credit

A business line of credit offers flexible access to funds, allowing borrowers to withdraw money as needed and pay interest only on the amount used. This option is particularly useful for managing fluctuating cash flow needs, enabling businesses to adapt to changing financial circumstances quickly.

Invoice Financing

Invoice financing allows businesses to borrow money against outstanding invoices. This form of financing can help bridge cash flow gaps while waiting for customers to pay their bills. It provides immediate funds based on invoices, giving businesses the liquidity they need to operate effectively.

How Do I Qualify for a Small Business Loan?

Qualifying for a small business loan typically involves meeting specific criteria set by lenders. This includes evaluating credit scores, financial statements, and the length of time the business has been operational.

Credit Score Requirements

Lenders usually require a minimum credit score to approve a loan application. A higher credit score reflects better creditworthiness, increasing the chances of approval and securing favorable loan terms. Business owners should regularly check their credit scores and address any discrepancies before applying for a loan.

Business Financials

Financial statements, including balance sheets, income statements, and cash flow statements, play a critical role in the loan application process. Lenders assess these documents to gauge a business’s financial health, profitability, and ability to repay the loan. Maintaining accurate and up-to-date financial records is essential for potential borrowers.

Time in Business

The length of time a business has been operating often influences loan eligibility. Established businesses with a track record of success are generally viewed more favorably by lenders. Newer businesses may face stricter scrutiny and need to provide additional documentation to demonstrate their viability.

What Documents Do I Need to Apply for a Loan?

Applying for a small business loan requires specific documentation to provide lenders with a comprehensive view of the business’s financial health and operational plans. Key documents include a business plan, financial statements, and tax returns.

Business Plan

A well-structured business plan outlines the company’s goals, strategies, and financial projections. This document is essential for demonstrating to lenders how the business plans to use the loan funds and achieve profitability. A comprehensive business plan can significantly enhance the chances of loan approval.

Financial Statements

Financial statements, such as income statements and balance sheets, provide a snapshot of the business’s financial performance. These documents help lenders assess revenue, expenses, and overall financial health. Consistent and transparent financial reporting is vital for building lender trust.

Tax Returns

Business tax returns offer insight into a company’s earnings and tax obligations. Lenders often request the last few years of tax returns to verify income and assess the business’s financial stability. Accurate tax documentation is crucial for a successful loan application.

What Are the Best Small Business Loans in California?

The best small business loans in California vary by lender type, including local banks, online lenders, and government programs. Each option offers unique advantages that can benefit businesses seeking cash flow solutions.

Local Lenders

Local banks and credit unions often provide tailored loan products for small businesses in their community. They may offer competitive rates and personalized service, making them a valuable resource for business owners. Establishing a relationship with a local lender can also enhance the chances of securing a loan.

Online Lenders

Online lenders have gained popularity due to their quick application processes and flexible terms. They often cater to businesses that may not qualify for traditional bank loans, providing various financing options. However, borrowers should compare interest rates and terms to ensure they choose a reputable lender.

Government Programs

Government-backed loan programs, such as the Small Business Administration (SBA) loans, offer favorable terms and lower interest rates. These loans are designed to support small businesses, making them an attractive option for those seeking cash flow assistance. Understanding the application process and eligibility requirements is crucial for leveraging these programs.

How Do I Choose the Right Loan for My Business?

Selecting the right loan involves assessing your business’s specific needs, comparing loan terms, and evaluating interest rates. A thorough understanding of your financial situation will guide you in making an informed decision.

Assessing Business Needs

Before applying for a loan, it’s vital to assess your business’s cash flow requirements. Determine the amount needed and how quickly the funds are required. Understanding the purpose of the loan—whether for expansion, inventory purchase, or operational costs—will help narrow down suitable options.

Comparing Loan Terms

Different loans come with varying terms, including repayment periods, interest rates, and fees. Carefully compare these terms across multiple lenders to find the most favorable conditions. A longer repayment term may reduce monthly payments but can lead to higher overall interest costs.

Evaluating Interest Rates

Interest rates significantly impact the total cost of borrowing. It’s essential to understand the difference between fixed and variable rates and how they may affect your loan over time. Comparing Annual Percentage Rates (APRs) across lenders can help you find the best deal.

What Are the Pros and Cons of Small Business Loans?

Small business loans offer various advantages and disadvantages. Understanding these can help business owners make informed decisions about financing options that best suit their needs.

Advantages of Borrowing

One of the primary advantages of small business loans is the immediate access to capital needed to manage expenses or invest in growth. Loans can also help build business credit, improving the chances of securing future financing. Additionally, interest on business loans is often tax-deductible.

Disadvantages of Debt

Despite their benefits, loans come with risks. Businesses may face repayment challenges if cash flow is insufficient, potentially leading to default. Furthermore, accumulating debt can strain a business’s financial health, especially if the loan terms are unfavorable.

Long-term vs Short-term Considerations

Choosing between long-term and short-term loans depends on the business’s financial strategy. Short-term loans provide quick access to funds but often come with higher interest rates, while long-term loans can offer lower rates but require a longer commitment. Business owners should evaluate their cash flow and repayment capabilities when deciding.

How Do Interest Rates Affect My Loan?

Interest rates play a crucial role in determining the overall cost of a loan. A higher interest rate increases the total repayment amount, while lower rates can result in significant savings over time.

Understanding Fixed vs Variable Rates

Fixed interest rates remain constant throughout the loan term, providing predictability in repayment. In contrast, variable rates can fluctuate based on market conditions, potentially increasing costs over time. Understanding these differences is essential for making informed borrowing decisions.

Impact of Market Conditions

Interest rates are often influenced by broader economic conditions, including inflation and central bank policies. Businesses should stay informed about market trends, as changes in interest rates can directly impact borrowing costs and financial planning.

How to Lock in Rates

Some lenders allow borrowers to lock in interest rates when applying for a loan. This can protect against rate increases during the approval process. Business owners should inquire about rate lock options to ensure they secure the most favorable terms available.

What is the Average Interest Rate for Small Business Loans?

The average interest rate for small business loans can vary significantly based on the lender, loan type, and borrower qualifications. Understanding current trends and factors influencing rates is crucial for borrowers seeking financing.

Current Trends in California

As of 2023, small business loan interest rates in California have been influenced by economic recovery and Federal Reserve policies. Generally, rates range from 4% to 13% depending on the lender and loan type. Staying updated on local trends can help business owners secure better rates.

Factors Influencing Rates

Several factors can influence the interest rates offered to borrowers, including credit score, loan term, and the type of collateral provided. Lenders assess these factors to determine the risk involved, which directly impacts the interest rates they offer.

Comparing APR vs Interest Rate

Understanding the difference between APR and nominal interest rates is essential. APR accounts for the total cost of borrowing, including interest and fees, while nominal rates only reflect the interest charged. Comparing APRs across lenders provides a clearer picture of the true cost of a loan.

How Long Does It Take to Get a Small Business Loan?

The time it takes to secure a small business loan varies based on the lender and the complexity of the application. Traditional banks may take longer than online lenders, who often expedite the process significantly.

Traditional Banks vs Online Lenders

Traditional banks typically have a more rigorous application process, which can take several weeks or even months. In contrast, online lenders often provide quicker approvals, sometimes within 24 hours, making them ideal for urgent cash flow needs.

Typical Timeframes

On average, small business loans can take anywhere from a few days to several weeks to process. Factors such as the completeness of the application and the lender’s workload can affect these timeframes. Understanding the timeline helps business owners plan their financing needs more effectively.

Expediting the Process

To expedite the loan process, business owners should prepare their documentation in advance and ensure that all financial records are accurate and up-to-date. Communicating proactively with lenders and responding quickly to requests for information can also speed up the approval process.

What Fees Should I Expect When Taking Out a Loan?

When taking out a small business loan, borrowers should be aware of various fees that may apply. Understanding these costs is essential for evaluating the total expense of borrowing.

Origination Fees

Origination fees are charged by lenders to process a loan application and are typically a percentage of the total loan amount. These fees can range from 1% to 5% and should be factored into the overall cost of the loan when assessing affordability.

Prepayment Penalties

Some lenders impose prepayment penalties if borrowers pay off their loans early. This fee compensates the lender for lost interest income. Business owners should inquire about prepayment penalties before accepting a loan offer to avoid unexpected costs.

Late Fees

Late fees may apply if a borrower misses a payment deadline. These fees can add up quickly, increasing the overall cost of the loan. Understanding the lender’s policies on late payments is critical for maintaining financial health and avoiding penalties.

Are There Grants Available for Small Businesses in California?

Yes, various grants are available for small businesses in California. These grants can provide non-repayable funds to help entrepreneurs grow their businesses without the burden of debt.

Types of Grants

Grants for small businesses in California may come from government agencies, nonprofit organizations, or private foundations. They can be designated for specific purposes, such as research and development, technology upgrades, or minority-owned business support. Understanding the types of available grants is vital for accessing potential funding.

Eligibility Requirements

Each grant program has specific eligibility criteria that businesses must meet to qualify. These may include business size, industry type, and geographic location. Comprehensive research is necessary to identify grants that align with a business’s qualifications and goals.

How to Apply

The application process for grants often involves submitting detailed proposals outlining the business’s objectives and how the funds will be utilized. Crafting a compelling proposal that clearly articulates the business’s mission and impact is essential for increasing the chances of approval.

What Are Alternative Financing Options?

Alternative financing options provide additional avenues for securing capital outside traditional loans. These options cater to businesses with unique needs or those that may struggle to obtain conventional financing.

Crowdfunding

Crowdfunding allows businesses to raise funds by soliciting small contributions from a large number of people, typically through online platforms. This method can be effective for startups seeking to validate their product or service while building a community of supporters.

Angel Investors

Angel investors are individuals who provide capital to startups in exchange for equity ownership. They often bring valuable expertise and connections, which can help businesses grow. However, entrepreneurs should be prepared to share a portion of their business with investors.

Peer-to-Peer Lending

Peer-to-peer lending platforms connect borrowers directly with individual investors seeking to fund loans. This alternative financing method can offer competitive rates and flexible terms, making it an attractive option for small business owners. However, borrowers should carefully review the terms and ensure they understand the risks involved.

How Can I Improve My Chances of Getting Approved?

Improving the chances of loan approval involves enhancing creditworthiness, strengthening the business plan, and building relationships with lenders. These steps can increase a borrower’s attractiveness to potential lenders.

Improving Credit Score

Business owners can improve their credit scores by paying bills on time, reducing outstanding debts, and regularly checking credit reports for errors. A higher credit score can lead to better loan terms and increased chances of approval.

Strengthening Business Plan

A solid business plan that clearly outlines goals, strategies, and financial forecasts can impress lenders. It demonstrates preparedness and a clear vision for using the loan funds effectively, which can significantly enhance approval chances.

Building Relationships with Lenders

Developing a good relationship with potential lenders can improve the chances of securing a loan. Regular communication, transparency, and seeking advice can help build trust, making lenders more likely to approve loan applications.

What Role Does My Credit Score Play?

Your credit score is a critical factor in determining loan eligibility and interest rates. Lenders use it to assess your creditworthiness and ability to repay the loan.

Understanding Credit Scores

Credit scores typically range from 300 to 850, with higher scores indicating better creditworthiness. Lenders usually have minimum score requirements, and those with higher scores often receive more favorable loan terms. Understanding how credit scores are calculated is essential for improving your score.

How to Improve Your Score

Improving your credit score involves consistently paying bills on time, reducing credit utilization, and maintaining a mix of credit types. Regularly monitoring your credit report for inaccuracies and disputing any errors can also help enhance your overall creditworthiness.

Impact on Loan Terms

A strong credit score can result in lower interest rates and more favorable loan terms. Conversely, a poor credit score may lead to higher rates or denial of the loan application. Understanding this relationship is crucial for business owners seeking financing.

How Can I Use a Loan to Improve Cash Flow?

A loan can be strategically used to improve cash flow by investing in areas that generate revenue or streamline operations. Effective utilization of loan funds can lead to long-term financial stability.

Utilizing Funds Effectively

To improve cash flow, business owners should use loan funds for necessary investments such as upgrading equipment, expanding product lines, or investing in marketing efforts. These investments can lead to increased sales and improved cash flow over time.

Investing in Inventory

Using loan funds to purchase inventory can help businesses meet customer demand and avoid stockouts. Managing inventory effectively ensures that products are readily available, leading to increased sales and improved cash flow.

Managing Expenses

Loans can also be used to manage operational costs, such as covering payroll during slow periods or handling unexpected expenses. This financial buffer helps maintain smooth operations and prevents cash flow disruptions during challenging times.

What Are Some Common Mistakes to Avoid?

Avoiding common mistakes can significantly improve the chances of successfully securing a small business loan and managing it effectively. Being aware of potential pitfalls is crucial for borrowers.

Not Reading the Fine Print

Borrowers often overlook the fine print in loan agreements, which can lead to unexpected fees and unfavorable terms. It’s essential to carefully review all loan documents and ask questions to clarify any unclear points before signing.

Overborrowing

Borrowing more than necessary can strain a business’s finances and lead to repayment challenges. It’s important for business owners to assess their actual funding needs and only borrow what they can comfortably repay to maintain financial health.

Ignoring Cash Flow Projections

Failing to create and monitor cash flow projections can lead to financial mismanagement. Business owners should regularly review their cash flow forecasts to identify potential shortfalls and make informed decisions regarding loan usage and repayment strategies.

How Can I Monitor My Cash Flow After Securing a Loan?

Monitoring cash flow post-loan is essential for ensuring the business can meet its repayment obligations. Implementing effective cash flow management strategies can help maintain financial health.

Cash Flow Management Tools

Utilizing cash flow management tools, such as accounting software, can help businesses track income and expenses in real-time. These tools provide insights into cash flow patterns and help identify potential issues before they become critical.

Setting Up Regular Reviews

Regularly reviewing cash flow statements and forecasts allows business owners to stay informed about their financial position. Setting monthly or quarterly reviews can help identify trends and adjust strategies as needed to maintain positive cash flow.

Adjusting Business Strategies

Monitoring cash flow enables businesses to make informed decisions about operational adjustments, such as reducing expenses or increasing sales efforts. Being proactive in addressing cash flow challenges can help ensure ongoing financial stability.

What Happens If I Can’t Repay the Loan?

Failing to repay a loan can lead to serious consequences, including damage to credit scores and potential legal actions. Understanding the implications and available options is crucial for borrowers facing repayment challenges.

Consequences of Default

Defaulting on a loan can result in severe financial repercussions, including legal action from lenders and potential loss of collateral. It can also significantly impact the borrower’s credit score, making it challenging to secure future financing.

Understanding Loan Terms

Borrowers should fully understand their loan terms, including payment schedules and consequences of late payments. Being aware of these terms can help businesses prepare for potential challenges and communicate effectively with lenders if difficulties arise.

Negotiating with Lenders

If a borrower is struggling to make payments, it may be possible to negotiate with the lender for a more manageable repayment plan or temporary deferment. Open communication can often lead to solutions that prevent default and maintain the borrower-lender relationship.

How Can I Refinance My Small Business Loan?

Refinancing a small business loan involves replacing an existing loan with a new one, typically to secure better terms or lower interest rates. This strategy can help improve cash flow and reduce overall borrowing costs.

When to Refinance

Business owners should consider refinancing when interest rates drop significantly or when their credit profile improves. Additionally, if the existing loan terms are unfavorable, refinancing can be a smart financial decision to enhance cash flow.

Steps to Refinance

The refinancing process typically involves researching lenders, comparing loan options, and submitting a new loan application. It’s important to assess the costs associated with refinancing, including any fees or penalties, to ensure that the benefits outweigh the expenses.

Potential Benefits

Refinancing can lead to lower monthly payments, reduced interest costs, and improved cash flow. By securing more favorable loan terms, businesses can allocate funds more effectively, fostering growth and operational stability.

What Are the Tax Implications of Business Loans?

The tax implications of business loans can significantly impact overall financial planning. Understanding how interest payments and loan proceeds affect taxes is essential for business owners.

Interest Deductibility

Interest paid on business loans is generally tax-deductible, reducing the overall tax burden for business owners. Properly documenting interest payments and associating them with business expenses is crucial for maximizing tax benefits.

Impact on Financial Statements

Business loans affect financial statements, including balance sheets and income statements. The debt should be accurately recorded, and interest payments should be reflected as expenses. Understanding these impacts helps maintain transparent financial reporting.

Understanding Tax Returns

When filing tax returns, business owners must report loan proceeds and interest payments accurately. Seeking guidance from a tax professional can help navigate the complexities of tax implications related to business loans and ensure compliance with tax regulations.

How Can I Use Financial Planning to Manage Cash Flow?

Effective financial planning is crucial for managing cash flow and ensuring long-term business sustainability. Strategic planning helps anticipate cash flow needs and align financial resources accordingly.

Creating a Cash Flow Forecast

A cash flow forecast projects future cash inflows and outflows, helping businesses anticipate shortfalls and plan for expenses. Regularly updating the forecast based on actual performance allows for proactive financial management.

Budgeting Tips

Implementing a detailed budget helps control spending and allocate resources effectively. Business owners should categorize expenses and prioritize essential costs to maintain a healthy cash flow. Regularly reviewing the budget ensures alignment with financial goals.

Financial Tools and Resources

Various financial tools and resources, including accounting software and cash flow management apps, can aid in effective cash flow management. Utilizing these tools can provide insights, automate tracking, and help make informed financial decisions.

What Are the Trends in Small Business Lending in California?

Small business lending trends in California reflect the evolving financial landscape and the needs of entrepreneurs. Staying informed about these trends can help business owners navigate financing options effectively.

Market Analysis

Current market analysis indicates a growing demand for small business loans, driven by recovery efforts post-pandemic. Lenders are increasingly offering diverse products tailored to meet the unique needs of California’s small business community.

Emerging Lenders

New online lenders and fintech companies are emerging, providing innovative financing solutions that cater to a broader range of borrowers. These lenders often leverage technology to streamline application processes and offer competitive terms.

Changes in Regulations

Regulatory changes can significantly impact small business lending practices. Staying informed about new regulations helps business owners understand potential implications for loan availability, terms, and compliance requirements.

How Do Seasonal Businesses Manage Cash Flow?

Seasonal businesses face unique cash flow challenges and must implement strategies to manage fluctuations effectively. Understanding these strategies can help maintain financial stability throughout the year.

Strategies for Seasonal Cash Flow

Seasonal businesses can manage cash flow by creating budgets that account for high and low seasons. Setting aside surplus funds during peak periods ensures that there are resources available during slower months, helping maintain operational continuity.

Loans for Seasonal Businesses

Seasonal businesses may benefit from specific loan products designed to address cash flow gaps during off-peak times. Understanding the availability of these loans can provide essential financial support to navigate seasonal fluctuations.

Planning Ahead

Effective planning is crucial for seasonal businesses. By analyzing past performance and forecasting future cash flow needs, business owners can make informed decisions about inventory, staffing, and investment to optimize cash flow throughout the year.

What Are the Best Practices for Cash Flow Management?

Implementing best practices for cash flow management is essential for maintaining financial health and ensuring business sustainability. These practices help businesses navigate challenges and optimize their financial operations.

Tracking Expenses

Regularly tracking expenses allows businesses to identify spending patterns and areas for cost reduction. Utilizing accounting software can simplify this process, providing real-time insights into financial performance and helping maintain control over cash flow.

Invoicing Strategies

Effective invoicing strategies, such as prompt billing and offering discounts for early payments, can improve cash flow. Clear payment terms and consistent follow-ups can encourage timely customer payments, reducing cash flow gaps.

Building a Cash Reserve

Establishing a cash reserve can provide a financial buffer during lean periods. Setting aside a portion of profits for emergencies or unexpected expenses helps businesses avoid cash flow disruptions and ensures operational stability.

How Can Networking Help in Securing Small Business Loans?

Networking can play a pivotal role in securing small business loans by providing access to valuable resources, mentorship, and potential lending connections. Building a strong network enhances opportunities for financing and growth.

Building Relationships

Developing relationships with local business leaders, lenders, and mentors can create opportunities for securing loans. Networking can lead to introductions to lenders who may be more inclined to support businesses with whom they have established relationships.

Finding Mentors

Connecting with experienced entrepreneurs or industry professionals can provide guidance and insights into the loan application process. Mentors can share their experiences, helping business owners navigate challenges and refine their approaches to securing financing.

Leveraging Local Networks

Participating in local business organizations, chambers of commerce, or networking events can expand a business owner’s network. These connections can lead to potential partnerships, referrals, and access to information about funding opportunities, including loans.

What Resources Are Available for Small Business Owners in California?

California offers a wealth of resources for small business owners, including local business development centers, nonprofit organizations, and online resources. These resources can provide valuable support for entrepreneurs seeking guidance and funding.

Local Business Development Centers

Local business development centers provide assistance with business planning, financing options, and market research. These centers often offer free or low-cost services, making them a valuable resource for small business owners seeking support.

Nonprofit Organizations

Nonprofit organizations dedicated to supporting small businesses often provide resources such as mentorship programs, workshops, and access to funding opportunities. Engaging with these organizations can help entrepreneurs build skills and network with other business owners.

Online Resources

Numerous online resources, including government websites and financial platforms, provide information on funding options, grant opportunities, and business management. Utilizing these resources can help business owners stay informed and make better financial decisions.

Mini FAQ

Q: What is a small business loan?
A small business loan is funding provided to a business for various operating expenses, growth opportunities, or investments.

Q: How can I improve my chances of getting a loan?
Improving credit scores, strengthening business plans, and building relationships with lenders can enhance approval chances.

Q: What types of loans are available for cash flow?
Short-term loans, lines of credit, and invoice financing are common options for managing cash flow.

Q: Are there grants available for small businesses?
Yes, various grants exist for small businesses in California, often provided by government agencies and nonprofits.

Q: How can I manage cash flow effectively?
Tracking expenses, creating cash flow forecasts, and developing a cash reserve are effective management strategies.

Q: What happens if I can’t repay my loan?
Failure to repay can lead to default, affecting credit scores and possibly resulting in legal action.

Q: What are the current trends in small business lending?
Emerging lenders and evolving market conditions are shaping small business lending trends in California.