CalCAP ADA Retrofits (CalCAP ADA) General Information

CalCAP ADA Program Description

• CalCAP ADA provides a risk management tool to a participating financial institution (PFI) after a small business borrower (SBB) has applied to a PFI, the PFI has underwritten the loan and determined a risk management tool will be useful and that the loan fits the eligibility criteria for CalCAP ADA, and the PFI has disbursed the loan to the SBB.
• After a loan is disbursed by the PFI, the PFI has applied for enrollment in CalCAP ADA, and enrollment has been approved, contributions for that loan are added to the loan loss reserve assigned to that PFI.
• The accumulated loan loss reserve is available to pay up to 100% of the PFI’s claim for each enrolled loan, during the term of enrollment, in the case of default.
• If no claim for an enrolled loan is made prior to the expiration of enrollment, the contributions made by borrower and the program for that loan are recycled back to the program.
• Contribution Amount
• PFI identifies the amount of the loan which is eligible to enroll ($50,000 maximum)
• PFI selects contribution percentage between 2 and 3.5% of the enrolled loan amount
• PFI and SBB each contribute the selected percentage of the enrolled loan amount
• The CalCAP ADA match is four times the PFI contribution
• If the SBB is a small business located in a severely affected community (SAC), the program makes an additional matching contribution (SAC contribution)
• SAC includes areas with emergency or disaster declarations, or high unemployment, or other geographic designations
• In addition, after a qualifying loan has been enrolled, the SBB may receive a reimbursement for the cost of a Certified Access Specialist (CASp) survey, up to 5% of the enrolled loan amount. The SBB will obtain the reimbursement request from the PFI.

Eligibility for Enrollment of Loan in CalCAP ADA

A participating financial institution (PFI) can enroll a qualifying loan made to a qualifying small business borrower (SBB).

• Qualifying loan
• A loan for the purpose of physical alterations or retrofits for compliance with the federal Americans with Disabilities Act (ADA)
• The SBB obtains a Certified Access Specialist (CASp) report
• The SBB obtains a cost estimate for the physical alterations or retrofits
• Physical alterations or retrofits for compliance with federal ADA includes costs which are necessary and allocable for compliance with the ADA and may include:
• Cost of surveying facilities
• Estimating and planning eligible alterations
• Other related expenses
• The following is excluded:
• Business expansion
• Maximum loan amount: $50,000

• Qualifying facility
• Facility is located in California
• Facility is 10,000 or less square feet
• Facility does not include overnight accommodations
• Qualifying small business borrower
• 30 or fewer full-time equivalent (FTE) employees OR total annual gross income from all sources of less than $5,000,000
• Small business borrower does not provide overnight accommodations
• Small business borrower does not engage in activities prohibited by California Code of Regulations §8070(u)(4)(A)

Frequently Asked Questions (FAQ)

• Frequently asked questions about CalCAP ADA Retrofits

CalCAP ADA Technical Program Summary

• For more information, refer to the technical program summary for CalCAP ADA.