California Pollution Control Financing Authority

CalCAP/ADA Program

California Pollution Control Financing Authority

Frequently Asked Questions (FAQ’s)

  1. What is the purpose of the CalCAP Americans with Disabilities Act Program?
  2. What does loan loss reserve (LLR) coverage mean?
  3. Does the CalCAP/ADA Program guarantee lower interest rates and fees to borrowers?
  4. Does the CalCAP/ADA Program require borrowers to use specific contractors?
  5. How do I know if I am an eligible small business?
  6. Can both owner and lessee qualify for CalCAP/ADA loans?
  7. What are the steps to obtaining a CalCAP/ADA loan?
  8. Who do I contact for financing?
  9. Can I obtain a loan from my preferred lender to retrofit my building?
  10. What is a Certified Access Specialist (CASp) and where can I find more information about the CASp process?
  11. I am currently in the process of planning a retrofit my building, what costs can be financed for loans to be enrolled in this Program?
  12. How do I find out if I qualify for another CalCAP program?

1. What is the purpose of the California Capital Access Program (“CalCAP) Americans with Disabilities Act (“ADA”) Financing Program (“CalCAP/ADA”)?

The CalCAP/ADA Program encourages banks and other financial institutions to make loans to small businesses. CalCAP is administered by the California Pollution Control Financing Authority (CPCFA). CalCAP is a loan loss reserve program which may provide up to 100% coverage on certain loan defaults. By participating in CalCAP, lenders have available to them a proven credit enhancement to meet the financing needs of California's small businesses. If you own a small business with 15 or fewer full time equivalent employees and need a loan for physical alterations or retrofits to your small business facility of less than 10,000 square feet for compliance with the federal Americans with Disabilities Act, you may receive more favorable loan terms from a lender if your loan can be enrolled in the CalCAP/ADA Financing Program.

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2. What does loan loss reserve (LLR) coverage mean?

The CalCAP program offers loan loss reserve accounts for enrolled lenders to incentivize lending by providing up to 100% coverage on certain loan defaults. By participating in CalCAP/ADA, lenders have available to them a proven credit enhancement to meet the financing needs of California’s small businesses.

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3. Does the CalCAP/ADA Program guarantee lower interest rates and fees to borrowers?

No. CalCAP/ADA does not set interest rates. Loan terms are based on the lender’s own underwriting standards and are established by the lender working directly with the borrower. CalCAP/ADA welcomes new lenders to participate in the Program. In order to become a participating lender, financial institutions must submit the following applications: https://www.treasurer.ca.gov/cpcfa/calcap/forms/application.pdf.

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4. Does the CalCAP/ADA Program require borrowers to use specific contractors?

No. However, in California, anyone who contracts to perform work on a project that is valued at $500 or more for combined labor and materials costs must hold a current, valid license from the California Contractors State License Board.

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5. How do I know if I am an eligible small business??

Eligible small business have the following:

  • 30 or few full-time equivalent employees OR total annual gross income from all sources of less than five million dollars ($5,000,000)
  • Facilities with 10,000 or less square feet
  • Do not provide overnight accommodations
  • Is not engaged in activities prohibited by California Code of Regulations §8070(u)(4)(A)

6. Can both owner and lessee qualify for CalCAP/ADA loans?

Yes both owner and lessee may qualify for the CalCAP/ADA loan program.


7. What are the steps to obtaining a CalCAP/ADA loan?

  • Contact a Participating Lender
  • Obtain a Certified Access Specialist (CASp) report and cost estimate
  • Meet eligibility requirements of the CalCAP/ADA program and get approved by a Participating Lender for the loan
  • Lender enrolls the loan in the CalCAP/ADA program

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8. Who do I contact for financing?

Participating Lender List
https://www.treasurer.ca.gov/cpcfa/calcap/ada/institutions.pdf

New lenders are welcome. Please click on the link below to locate the CalCAP Financial Institution Application.
https://www.treasurer.ca.gov/cpcfa/calcap/forms/application.pdf

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9. Can I obtain a loan from my preferred lender to retrofit my building?

Yes. You can obtain financing from any lender you choose, but only participating lenders may enroll loans in the CalCAP/ADA Program. CalCAP/ADA welcomes new lenders. In order to become a participating lender, financial institutions must submit the following application: https://www.treasurer.ca.gov/cpcfa/calcap/forms/application.pdf

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10. What is a Certified Access Specialist (CASp) and where can I find more information about the CASp process?

What is a CASp?
https://casinstitute.org/about/casp

Statewide Certified Access Specialists (CASp) List from California Division of the State Architect
https://www.apps2.dgs.ca.gov/DSA/casp/casp_certified_list.aspx

CA.Gov Certified CASp FAQ
http://www.adacompliancepros.com/faq#howmuch

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11. I am currently in the process of planning a retrofit my building, what costs can be financed for loans to be enrolled in this Program?

Proceeds from loans enrolled in the Program may be used for physically altering or retrofitting existing small business facilities of less than 10,000 square feet if the costs are necessary and allocable for compliance with the ADA. Eligible costs may also include the cost of surveying facilities, estimating and planning eligible alterations, and other related expenses but do not include business expansion.

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12. How do I find out if I qualify for another CalCAP program?

The California Pollution Control offers a variety of other capital access programs for small business and building owners. Click the link before for more information.
https://www.treasurer.ca.gov/cpcfa/calcap/index.asp

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