California Pollution Control Financing Authority

California Capital Access Program for Small Business

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


CalCAP for Small Business (SB) is a program that incentivizes participating financial institutions (PFIs) to address the growing and ongoing financing needs of California’s small business borrowers (SBBs) by providing a safety net of matching contributions to loan loss reserve accounts for PFIs. This proven financing mechanism has helped thousands of California small businesses gain financing they otherwise would not have been able to access.

How CalCAP for Small Business Works

  • SBB applies to PFI for a loan of private capital; PFI applies its underwriting standards
  • PFI determines the enrolled loan amount and contribution percentage between 2% and 3.5%
  • PFI and SBB each contribute the selected percentage of the enrolled loan amount to the PFI’s CalCAP SB loan loss reserve account
  • Within 15 days of loan issuance, PFI submits an enrollment application to CalCAP
  • CalCAP matches PFI’s contribution and contributes the additional Severely Affected Community amount if applicable
    • Under SSBCI 2.0, the CalCAP contribution will be increased
  • Up to 100% reimbursement for certain defaults is made from PFI’s CalCAP SB loan loss reserve account

Which Loans Qualify for CalCAP for Small Business?

  • 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
  • Most Business Sectors
  • Loan Amounts up to $5,000,000
    • Up to $2,500,000 of a $5,000,000 loan may be enrolled
    • A maximum of $2,500,000 across all loans per SBB may enrolled within a three year period
  • Additional Contribution for High Unemployment and Other Severely Affected Communities
    • Loans to businesses located in Severely Affected Communities (SAC) including high unemployment areas and areas designated as emergency or disaster areas by the Governor
  • Primary Business is a California Business
    • Business activity funded by the loan must be created and retained in California
  • Employee Count is 1 to 500
    • In addition, 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