The program is designed to pledge cash to cover collateral shortfall on small business loans of $50,000.00 to $20,000,000.00, allowing businesses lacking collateral to obtain financing.
Loans may be for any small business purpose with a few exceptions noted below. Loans enrolled in the program may receive up to 100% coverage available in the Collateral Support account in case of defaults. Common uses of loan proceeds are for the acquisition of land, construction or renovation of buildings, purchase of equipment or inventory, or other capital projects including working capital and business start-up costs. There are limitations on loans involving passive real estate, debt refinancing, and the repayment of federal or state income taxes. Prohibited uses of loan proceeds include but are not limited to: gambling facilities, bars, gun sales, cannabis, tobacco manufacturing and sales, and adult entertainment businesses.Maximum loan size is $50,000.00 - $20,000,000.00.CPCFA does not work directly with borrowers to apply for financing, applicants must apply through participating financial institutions. https://www.treasurer.ca.gov/cpcfa/calcap/sb/institutions.pdfThe total number of loans enrolled (2013-2019) is 288, with an average loan amount of $511,332.00.
The business's primary economic effect must be in California and have 750 employees or fewer.
The business must be located in California. Loans for areas within high unemployment areas or which have been declared disaster areas are eligible for additional funding.
Matching Funding Requirement:
A closing fee is required which is 20-50% of the loan amount.
How to Apply
State agencies/departments recommend you read the full grant guidelines before applying.
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