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 the PFI’s and SBB’s contribution and contributes the additional Severely Affected Community amount if applicable
  • 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 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
  • 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 for Small Business
  • After applying, the participating financial institution’s underwriting process will determine if the proposed loan should be enrolled in the CalCAP for Small Business, 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 for Small Business 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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