California Pollution Control Financing Authority

California Capital Access Program Collateral Support
CalCAP CS

CalCAP CS Provides Cash Support to Financial Institutions When They Make Loans to Small Businesses

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CalCAP Collateral Support (CS) is a program that incentivizes participating financial institutions (PFIs) to evaluate small business borrowers (SBBs) on factors other than collateral, by pledging cash to PFIs to cover the collateral shortfalls of loans made to SBBs which meet the PFIs’ underwriting standards except for having too little collateral.



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
  • 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 for Small Businesses and Financial Institutions

Support for Small Business Owners

For Participating Financial Institutions: Loans, Claims and Reports