Frequently Asked Questions (FAQ’s)
- What is the purpose of the CalCAP/CARB Program?
- What does loan loss reserve (LLR) coverage mean?
- How do I know if I am an eligible small business?
- What are the steps to obtaining a CalCAP/CARB loan?
- Who do I contact for financing?
- How do I find out if I qualify for another CalCAP Program?
- What grants can I use with my loan?
- Where can I go to find out the latest CARB information pertinent to my trucking business?
What is the purpose of the CalCAP/CARB Program?
The CalCAP/CARB 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 that 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. Loans in the Heavy-Duty Vehicle Air Quality Loan Program can be used to finance heavy-duty trucks (over 14,000 lbs. gross vehicle weight rating (GVWR)) equipped with engines certified to specified engine emission standards for 2010 and newer model year engines. The engines can use diesel fuel, compressed natural gas (CNG), liquefied natural gas (LNG) or other fuels including zero emission technology.
- Note that 2007-2009 model year engines are only compliant until January 1, 2023. Vehicles with retrofit particulate matter filters installed have replacement deadlines between 2020 and 2022. See: https://www.arb.ca.gov/msprog/onrdiesel/documents/multirule.pdf for more information.
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/CARB, lenders have available to them a proven credit enhancement to meet the financing needs of California’s small businesses.
How do I know if I am an eligible small business?
The borrower's fleet size must include no more than 10 on-road heavy-duty diesel vehicles at the time of the CalCAP/CARB loan.
The small business must be classified as a small business under U.S. Small Business Administration guidelines (Title 13 of the Code of Federal Regulations) and have 100 or fewer employees.
The borrower can be a truck owner-operator to be eligible for the CalCAP/CARB Program.
The borrower’s annual revenue must be $10 million or less, averaged over a three year period.
What are the steps to obtaining a CalCAP/CARB loan?
- Contact a Participating Lender
- Meet eligibility requirements of the CalCAP/CARB program and get approved by a Participating Lender for the loan.
- Lender enrolls the loan in the CalCAP/CARB program.
Who do I contact for financing?
New Lenders are welcome. Please click on the link below to locate the CalCAP Financial Institution Application. http://www.treasurer.ca.gov/cpcfa/calcap/forms/application.pdf
How do I find out if I qualify for another CalCAP Program?
What grants can I use with my loan?
Borrowers can use a Carl Moyer Voucher Incentive Program grant or a Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project grant as a down payment on a truck purchased with a loan. Also, the program can be coupled with Proposition 1B Goods Movement Emissions Reductions program grants. For more information please visit: https://arb.ca.gov/ba/fininfo.htm.
If fleet owners have received other forms of grant assistance, they should check with the issuing agency to make sure the grant agreement does not restrict them from receiving loan assistance from the program.
Where can I go to find out the latest CARB information pertinent to my trucking business?
CARB’s TruckStop website: https://www.arb.ca.gov/msprog/truckstop/truckstop.htm
Call CARB’s Diesel Hotline: 1-866-6DIESEL (1-866-634-3735)