In a town where jungle dreams meet beachfront realities, building or expanding a business in Santa Teresa, MalpaÃs, or Playa Hermosa often takes more than just vision—it takes financing. And in Costa Rica, securing a traditional bank loan can feel like chasing a mirage: slow, bureaucratic, and especially complicated for foreign residents. That’s where private loans come into play, offering faster, simpler solutions that remove the stress from securing funds.
That’s exactly how I felt after speaking with Dan, owner of Costa Private Loans.
Our first conversation happened over the phone. Dan immediately began asking thoughtful, relevant questions about my needs. Before I even hung up, he had not only answered all of mine—he had options on the table. That kind of clarity, right out of the gate, was rare and refreshing. Dan clearly knows his craft, and that gave me the confidence we could work together.
A few hours later, I received an introductory file from Costa Private Loans, along with a message from Dan’s partner, Karla. She introduced herself and provided step-by-step guidance through the paperwork, including the bank details I’d need to receive the loan. Before the week was over, Dan was in Santa Teresa, standing on my property, personally reviewing my loan request. He approved the loan before he left town. Just like that—a process I had dreaded became clear, efficient, and stress-free.
Of course, every loan situation is different, and I can’t promise that every case will move this quickly. What I can say is this: my experience was honest, human, and supportive—everything you want when navigating the sometimes murky world of finance in a foreign country.
It’s important to say—loud and clear—not all private lending is created equal. Many lenders operate in the shadows, hiding predatory terms behind friendly smiles. Hidden fees. Inflated interest rates. Legal traps that can turn opportunity into crisis. That’s why meeting Dan felt like such a relief. He brings something rare to the table: transparency, professionalism, and long-term trust.
With over 25 years of finance experience and deep roots in the expat community here in Santa Teresa, Dan started by helping friends complete construction projects and grow their properties. Today, his company, Costa Private Loans, provides flexible, short-term loans tailored to the unique needs of homeowners and business owners across the Nicoya Peninsula.
In this exclusive Q&A with Dan, we explore what makes a loan safe, how to avoid the common pitfalls, and why ethical private lending can be a powerful tool for sustainable growth—if used wisely. Whether you’re renovating a vacation rental, launching a new venture, or seeking construction financing in Costa Rica, this guide is designed to help you make smart, grounded decisions.
Because this isn’t just about borrowing money—it’s about investing in your future, your property, and the village we all call home.
Q&A with Dan Chaput, Costa Private Loans
Can you tell us about your company’s background and what inspired you to offer private loans in Costa Rica?
We were founded mostly out of necessity. I have been working in finance for 25 years, and was looking for a safe, solid, low-risk, low-fluctuation investment for my own funds. In the past I worked with other brokers and their service, knowledge and professionalism was very lacking. I found myself in legal situations that I didn’t want to be in, or impose on others; So I decided to do all of the leg work myself and focus on the expat market instead. My first personal loans with the company were actually in Santa Teresa helping people grow and expand their properties. They are still friends and clients to this day.
What types of loans do you specialize in, and what industries or businesses do you primarily serve?
We focus on low-risk; high-quality borrowers and lenders who have short-term (5 years or less) needs which hopefully help them grow their business or create a better situation. We generally avoid high-risk situations. Improving or growing properties is our biggest market segment.
How does your loan process differ from traditional bank loans?
Banks offer long-term (10+ year) amortized loans, mostly for purchases. Their fees and commissions are lower, but their penalty periods are higher (5 years with Lafise for example). They are also slower and more bureaucratic. We focus on speed, flexibility, interest-only for the first year, and the clients can pay off their loans partially or entirely after the first year.
What are the typical terms and interest rates for your loans?
We compete with international private money rates. Right now, 12% is pretty standard. The average loan period is 3 years, but sometimes private lenders will go for longer time periods, up to 10 years, but it is rare.
Local Business Impact
What are the most common reasons local business owners seek private loans?
Business growth, expansion and improvement.
Can you share success stories of businesses in Santa Teresa, MalpaÃs, or Hermosa that have benefited from your loans?
Yes, we currently have about 10–15 clients in the area and we have mostly helped them finish their construction projects if they run short of funds, which seems to be pretty common lately. Many people think it will cost less than it really does, especially for higher-end furnishings.
What challenges do businesses in this area face when trying to secure financing?
In Santa Teresa, many people have built structures without the proper permissions. We need to be sure that the property has legal water, electricity, building permits, and is enclosed and livable.
How do you assess the eligibility of a business for a loan?
We focus on safety. How safe is it for the borrower and lender to do business together? We never want anyone to have sleepless nights worrying about payment. So, we look at cash flow, property value, passive income, and having a plan B. Both parties also need to be reasonable and easy to work with. If someone is punchy, difficult, or rude it can create conflict which is what we are trying to avoid.
Loan Process & Risks
What should a business owner prepare before applying for a loan with your company?
We can generally do due diligence quite quickly. We will need all of the standard property documents like plano catastro, and permissions, as well as cédula jurÃdica and general income information.
Are there specific risks or challenges borrowers should be aware of when taking a private loan?
Yes. At the end of the day, your property is the collateral, just like a bank loan. It is an important decision and we encourage people to avoid taking a loan if it isn’t necessary. Debt is a powerful thing, and can be life altering. You need to make sure that in the worst-case scenario, you are able to pay your loan. A private lender does have the same rights as a bank in the sense that they can foreclose for non-payment.
What happens if a borrower struggles to repay their loan? Do you offer restructuring options?
Yes. The first thing we do is have a candid conversation to see what the situation is and talk about potential solutions. Sometimes a borrower decides to sell their property to recoup their investment and repay the loan. Sometimes a borrower asks for an extension or payment plan. In the case that the lender can’t offer additional time or funds, finding another lender may be the best choice to refinance the debt. The last situation anyone wants is a foreclosure situation.
Economic & Community Impact
How do you see private lending contributing to the local economy?
It can be a positive or a negative. In the Santa Teresa area, it can be the only tool that people have to finish or grow their projects. However, if people borrow too much, it can really hurt them.
Are you seeing any trends in business growth or investment in Santa Teresa and surrounding areas?
Yes, for a couple of years, asking prices were very unreasonable and too high, up to $9000/meter of construction when the replacement value was perhaps $2000–$2500. We are now coming back to normality. Prices will settle and people will need to price their products, services, and properties in a way that represents a reasonable value for the other party involved. Recent economic events and tariffs will absolutely have a negative effect.
What advice would you give to business owners considering a loan for expansion or renovation?
Do your homework, make sure you have a plan, and be realistic. Focus on the worst-case scenario, and if it isn’t too bad, then you are probably okay getting a loan to grow, expand, or refurbish your property.
How do you ensure ethical lending practices while supporting the growth of the community?
It is important to note that most private lending in Costa Rica is the opposite of ethical, it is downright predatory. This is a big reason why we decided to do things differently. It is also difficult to “ensure” anything because we are in a rapidly changing landscape where prices and economic activity are slowing. Things can happen. We try to focus on the smallest possible loan that will get the job done and be sure that the borrower has the income to be able to pay the interest easily, preferably with multiple income streams, or the ability to create an income stream in the worst-case scenario. That normally keeps things pretty safe, and for us, safety is the basis for being ethical in lending. We are also very careful to be completely honest and transparent. We never hide anything. This combination has worked for us so far and our current late payment rate is less than 2%, with zero foreclosures from our third-party lenders. We learned these principles because in the past when I only loaned my own money, I used other brokers who put me into bad loans by hiding information and being tricky. I unfortunately had to foreclose and it really bothered me. These past lessons helped us formulate a better way to operate in a more ethical way in the future.
