California Pollution Control Financing Authority

CalCAP Americans with Disabilities Act Financing Program Technical Program Summary

California Pollution Control Financing Authority

Please refer to the Participating Financial Institution Lender Manual and Program Regulations for any clarifications or items not addressed here. No item shall be construed as contradicting or superseding Program Regulations.

The California Capital Access Program (CalCAP) Americans with Disabilities Act (CalCAP/ADA) Financing Program assists small businesses with financing the costs to alter or retrofit existing small business facilities to comply with the requirements of the federal Americans with Disabilities Act (ADA) of 1990.

The CalCAP/ADA Financing Program is a self-sustaining program that will provide a credit enhancement to support private bank loans to small businesses to make required improvements. The businesses that qualify for the program are among the smallest and are at the most at risk.

The California Capital Access Program, administered by CPCFA since 1994, encourages banks and other financial institutions to make loans to small businesses.

CalCAP is a loan loss reserve program which may provide up to 100% coverage on certain loan defaults. By participating in CalCAP, financial institutions have available to them a proven credit enhancement to meet the financing needs of California's small businesses.

A loan enrollment for a loan to a borrower located in a community defined as Severely Affected Community (SAC) is eligible to receive an additional contribution from CalCAP State funds that is equal to one-half the PFI contribution.  The Authority's regulations define a Severely Affected Community as an "economically distressed geographic area", as designated by the Executive Director. In recognition of the economic impact of designated disasters, public safety power shutoffs, and COVID-19 to California small businesses, CalCAP will authorize a supplemental contribution for a credit enhancement for the 12 months following the designation for CalCAP for Small Business, CSP, CalCAP/ADA and CalCAP/Seismic Safety loans enrolled for borrowers located in areas designated as an emergency or disaster area by the Governor, and whose businesses are directly impacted by the emergency or disaster. This impact must be detailed on the Supplemental Severely Affected Community (SAC) Contribution Lender and Borrower Certification stating specifically how the business was affected, including the number of days, sales amount lost, and/or number of employees.

Eligible Uses of Loan Proceeds

Proceeds from loans enrolled in the CalCAP/ADA Financing 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 Americans with Disabilities Act. 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.

Eligible Small Businesses

California Small Businesses that meet the following criteria are eligible for the CalCAP/ADA Program:

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

Eligible Financial Institutions

Any federal or state-chartered bank, savings association, certified Community Development Financial Institutions (CDFI), or credit union is eligible to participate in CalCAP. A financial institution must certify that it is in good standing with its regulatory body (Federal Reserve, Federal Deposit Insurance Corporation, Comptroller of Currency, Thrift Supervision, National Credit Union Administration, or state banking authority). Financial institutions who have executed participation agreement with the Small Business Administration, microbusiness lenders and others may also be eligible.


The maximum enrolled loan amount is $50,000 and can be insured for up to five years (though the actual term of the loan can be longer). Participating financial institutions set all of the terms and conditions of the loans. Loans can be short or long-term, have fixed or variable rates, be secured or unsecured, and bear any type of amortization schedule.