California Capital Access Program Collateral Support
CalCAP CS

How CalCAP Collateral Support Works

• SBB applies to PFI
• PFI applies its underwriting standards and determines the proposed loan is under-collaterized
• PFI submits Collateral Support (CS) request and SBB risk assessment to CalCAP prior to loan issuance
• CalCAP evaluates the CS request and SBB risk assessment
• If approved, SBB and PFI must finalize the loan of private capital within 90 days
• PFI submits final loan information and closing fees to CalCAP within 15 business days of loan closing
• CalCAP funds the cash pledge with a deposit to an account unique to the specific loan
• Cash pledge is available to PFI in the event of certain default conditions

Which Loans Qualify for CalCAP Collateral Support?

• Loans for Many Business Needs
  • Working capital including inventory purchase
  • Capital projects including equipment purchase
  • Start-up costs
  • Land acquisition, construction or renovation of buildings
  • Bridge loans
• Most Business Sectors
  • Most North American Industry Classification System codes are eligible
• Loan Amount of $50,000 to $20,000,000 for “Green” or Manufacturing Businesses
  • Loans to businesses furthering energy and water conservation, alternative energy and environmental protection OR defined as manufacturing
  • Cash pledge up to 40% of the loan amount
  • Additional 10% if located in Severely Affected Community (SAC), including areas with emergency or disaster declarations, or high unemployment rate
  • Maximum pledge of $2,500,000 across all loans per SBB
• Loan Amount of $50,000 to $250,000 (Other than “Green” or Manufacturing Businesses)
  • Cash pledge up to 40% of the loan amount
  • Additional 10% if located in SAC
  • Maximum pledge of $500,000 across all loans per SBB
• Loan Amount of $250,001 to $20,000,000 (Other than “Green” or Manufacturing Businesses)
  • Cash pledge up to 30% of the loan amount
  • Additional 7.5% if located in SAC
  • Maximum pledge of $500,000 across all loans per SBB
• Primary Business is a California Business
  • Business activity funded by the loan must be created and retained in California
• Employee Count is 1 to 750
  • and the business is classified as a small business by the U.S. Small Business Administration

Participation and Support for Small Businesses

• Small businesses can begin by using technical support to learn about financing options and how to prepare to apply for capital
• The California Office of the Small Business Advocate (CalOSBA) has on-line resources for: managing finances, applying for funding, getting permits, addressing workforce issues, marketing the business, advising on operations, and more
• CalOSBA can refer you to small business technical support centers near you for no-cost or low-cost help
• CalOSBA offers referrals to help in more than 20 languages
• Small businesses can also access technical support from America’s Small Business Development Centers
• When ready to apply for capital, small businesses can apply to participating financial institutions
• Small businesses can request financial institutions with which they have an existing business relationship to consider enrolling as a participating financial institution for CalCAP Collateral Support
• After applying, the participating financial institution’s underwriting process will determine if the proposed loan should be enrolled in the CalCAP Collateral Support, and may also approve a proposed loan without enrolling the loan in CalCAP

Participation for Financial Institutions

• Many types of financial institutions are eligible to enroll in CalCAP Collateral Support as a participating financial institution
• There is no charge to enroll and all fees are paid on a per-loan basis
• Financial institutions begin enrollment with this one-page form

For Participating Financial Institutions: Loans, Claims and Reports

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• Certification to Participate in the State Small Business Credit Initiative (SSBCI) Program
• Certification to Participate in the California Capital Access Program
• Collateral Support Enrollment Documents
  • Collateral Support Request
  • Participating Financial Institution Lender Certification - Collateral Support
  • Borrower Certification - Collateral Support
  • Socially and Economically Disadvantaged Individuals (SEDI) Certification
  • Demographics-Related Data Certification
  • Commercial Real Estate and Refinancing Lender Questionnaire
  • CalCAP Supplemental SAC Contribution Form (Participating Financial Institutions can utilize this form to select a qualifying event to receive a Severely Affected Community (SAC) contribution.)
  • SSBCI Privacy Notice
  • Privacy Notice
• Claims
  • Collateral Support Default Notification
  • Claim Application - Collateral Support
• Reports
  • Quarterly Reporting Schedule
  • Quarterly Report Instructions & Template
• Media Release Authorization
  • Media Release Form