SSBCI 2.0 Frequently Asked Questions (FAQs) |
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- How can SSBCI 2.0 funds be used? What types of programs are included in SSBCI 2.0?
- Do small businesses apply to CPCFA for SSBCI 2.0 funds? How does a small business apply for CalCAP for Small Business or CalCAP Collateral Support?
- How do small businesses know if CalCAP for Small Business, CalCAP Collateral Support, or another program is best for their needs? Why are there different programs for small businesses instead of just one? Is this program like the Paycheck Protection Program or a Small Business Administration loan?
- Do the CalCAP for Small Business and CalCAP Collateral Support programs provide rate buydowns? Do the CalCAP for Small Business and CalCAP Collateral Support programs guarantee a lower interest rate on a loan?
- Is SSBCI 2.0 “first come, first served”?
- What support or technical assistance is available for small businesses?
- Do financial institutions apply to CPCFA for SSBCI 2.0? Do financial institutions receive loan funds from CalCAP for Small Business or CalCAP Collateral Support?
- How can SSBCI 2.0 funds be used? What types of programs are included in SSBCI 2.0?
- SSBCI 2.0 funds will be used to support programs that increase access to capital for small businesses and that provide technical assistance to small businesses.
Eligible states, including California, can use SSBCI 2.0 funds to support the following types of programs:
Capital Access: offered in California through CPCFA’s CalCAP for Small Business
Collateral Support: offered in California through CPCFA’s CalCAP Collateral Support
Loan Guarantee: offered in California through IBank’s Loan Guarantee Program
Loan Participation
Venture Capital: offered in California through IBank’s Venture Capital Access program
- Do small businesses apply to CPCFA for SSBCI 2.0 funds? How does a small business apply for CalCAP for Small Business or CalCAP Collateral Support?
- Small businesses do not apply to CPCFA; the SSBCI 2.0 programs are not direct loans or grants. Small businesses will participate in CalCAP for Small Business (CalCAP SB brochure) or CalCAP Collateral Support (CalCAP CS brochure) when they are ready to apply to a participating financial institution (PFI) and the PFI’s underwriting process determines that enrolling the proposed loan in CalCAP SB or CalCAP CS will support the PFI approving the proposed loan. A PFI may also approve a proposed loan without enrolling the loan in CalCAP SB or CalCAP CS.
- How do small businesses know if CalCAP for Small Business, CalCAP Collateral Support, or another program is best for their needs? Why are there different programs for small businesses instead of just one? Is this program like the Paycheck Protection Program or a Small Business Administration loan?
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Different programs, including the SSBCI 2.0 programs as well as other state and federal programs, use a variety of mechanisms and eligibility requirements to address needs that have been identified for various types of small businesses. Small businesses can use technical support to prepare necessary information about their business and compare options to determine which program(s) is the best fit for their needs.
The California Office of the Small Business Advocate (CalOSBA) offers information about starting, managing and growing small businesses and also refers small businesses to technical support centers for no-cost consultation or low-cost services. CalOSBA is applying for the SSBCI 2.0 Technical Assistance grant and will be growing current programs with it.
Small businesses can also obtain technical support directly from Small Business Development Centers. - Do the CalCAP for Small Business and CalCAP Collateral Support programs provide rate buydowns? Do the CalCAP for Small Business and CalCAP Collateral Support programs guarantee a lower interest rate on a loan?
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The CalCAP for Small Business and CalCAP Collateral Support programs include an interest rate ceiling tied to the National Credit Union Administration’s (NCUA) interest rate ceiling
(https://ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/permissible-loan-interest-rate-ceiling-extended-2); they are not rate buydown programs. - Is SSBCI 2.0 “first come, first served”?
- No, the SSBCI 2.0 funds will come to California in three tranches (sections) over eight years. The funds in future tranches cannot be reserved.
- What support or technical assistance is available for small businesses?
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The California Office of the Small Business Advocate (CalOSBA) offers information about starting, managing and growing small businesses and also refers small businesses to technical support centers for no-cost consultation or low-cost services. CalOSBA is applying for the SSBCI 2.0 Technical Assistance grant and will be growing current programs with it. Small businesses can also obtain technical support directly from Small Business Development Centers.
Small businesses can use technical support to prepare necessary information about their business and compare options to determine which program(s) is the best fit for their needs. - Do financial institutions apply to CPCFA for SSBCI 2.0? Do financial institutions receive loan funds from CalCAP for Small Business or CalCAP Collateral Support?
- Yes, financial institutions apply to participate. Financial institutions do not receive loan funds from CalCAP for Small Business (CalCAP SB brochure) or CalCAP Collateral Support (CalCAP CS brochure); participating financial institutions receive financial support that is available if certain default conditions occur.