California Capital Access Program (CalCAP) for Small Business
The CalCAP for Small Business Program encourages banks and other financial institutions to make loans to small businesses that may have difficulty obtaining financing. The program features a loan loss reserve model which may provide up to 100% coverage to participating lenders on losses as a result of certain loan defaults.
CalCAP is a loan loss reserve program which may provide up to 100% coverage to participating lenders on losses as a result of certain loan defaults. With CalCAP portfolio support, a lender may be more comfortable underwriting small business loans. CalCAP for Small Business Loans may be used for any small business purpose with a few exceptions as noted below. 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, tobacco manufacturing and sales, and adult entertainment businesses.Maximum loan size is $5,000,000.00 with only $2,500,000.00 enrolled in the program.CPCFA does not work directly with borrowers to apply for financing, applicants must apply through participating Financial Institutions, which may be found here: https://www.treasurer.ca.gov/cpcfa/calcap/sb/institutions.pdfThe total number of loans enrolled (1994-2019) is 22,349, with an average loan amount of $27,925.00.
The eligible business's location and primary economic effect must be located in California. The definition of a Small Business for these purposes is considered to be those businesses with 500 employees or fewer.
Small businesses must be located in California. Loans for areas with high unemployment rates or which have been declared disaster areas are eligible for additional funding.
Matching Funding Requirement:
Both the Borrower and Lender pay fees between 2 - 3.5% of loan enrollment amount.
How to Apply
State agencies/departments recommend you read the full grant guidelines before applying.
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