California Pollution Control Financing Authority

CalCAP Collateral Support (CalCAP CS) General Information

CalCAP CS Program Description

  • CalCAP CS provides a risk management tool to a participating financial institution (PFI) after a small business borrower (SBB) has applied to a PFI, and the PFI has begun the underwriting process.
  • Once a loan (or line of credit) is approved by the PFI and accepted for enrollment in CalCAP CS, it is assigned a cash pledge held in an account unique to that loan.
  • The cash pledge is available to pay the PFI’s claim in the case of default. If no claim is made prior to the expiration of enrollment, the cash pledge is returned to the program to support more loans to small businesses.
  • Size of Cash Pledge
  • 40% of the loan amount – new feature!
    • Previously was 30% or 40%
  • 10% additional if the SBB is located in a severely affected community (SAC)
    • Including areas with emergency or disaster declarations, or high unemployment, or socially and economically disadvantaged individual (SEDI)-owned businesses
  • $10,000,000 maximum amount of cash pledge – new feature!
    • Previously was $2,500,000
  • Enrollment Fee

Eligibility for Enrollment of Loan in CalCAP CS

A participating financial institution (PFI) can enroll a loan, or a line of credit, made to a small business borrower (SBB).

  • Loan or Line of Credit for Many Business Needs
    • Equipment purchase & other capital projects
    • Inventory purchase & other working capital
    • Ownership purchase by an ESOP or worker co-op
    • Real estate acquisition, construction, or renovation of buildings, for occupancy by the SBB (residential excluded)
    • Start-up costs
    • Bridge loans
  • Size of Loan
    • $25,000 minimum loan size - new feature!
      • Previously was $50,000
    • $20,000,000 maximum loan size
  • Most Business Sectors
  • Primary Business Economic Effect in California
    • 51% of the total jobs of the business are created or retained in California
    • Or, 51% of the total revenues of the business activity are generated in California
  • Employee Count is 1 to 750
    • and the SBB is classified as a small business by the U.S. Small Business Administration
  • Each loan may be enrolled in only one similar state or federal program
    • Separate loans, for separate purposes, to the same SBB can each be enrolled in a different program

CalCAP CS Technical Program Summary

For more information, refer to the technical program summary.