ABCs of the BCAs - The California Pollution Control Financing Agency (CPCFA)

February 2019

https://www.treasurer.ca.gov/cpcfa/

Are you interested in retrofitting your home or business to make it earthquake safe? Do you own a business and want to install electric vehicle charging stations?

Meet CPCFA, a financing authority under the aegis of the State Treasurer’s Office that works to ensure you have access to the private-sector loans you may need. CPCFA, does this through the California Capital Access Program (CalCAP). CalCAP was established within CPCFA in 1994 to assist small businesses that have difficulty obtaining financing by reducing the risk to lenders, thus encouraging more small business financing.

By participating in CalCAP, lenders have a proven credit enhancement available to them to meet the financing needs of small businesses throughout the state. CPCFA encourages banks and other financial institutions to make loans to small businesses by providing a “loan loss reserve program,” which may provide lenders with up to 100 percent coverage if a borrower defaults on a loan.

Lenders set all of the terms and conditions for enrolled loans pursuant to their usual underwriting policies. Loans can be short or long-term, secured or unsecured, have fixed or variable rates, and bear any type of payment schedule.

Today, we want to introduce you to two new CalCAP programs that are discussed in more detail below, our Electric Vehicle Charging Station Financing Program, and the Seismic Safety Loan Program.

Loans for Your Company’s E.V. Charging Stations

Treasurer Ma’s support of electric vehicle charging stations is long-standing. As a state legislator in 2011 she shepherded into law AB 631, enabling the fair market development of electric vehicle infrastructure throughout California.

The CalCAP Electric Vehicle Charging Station Financing Program (CalCAP/EVCS) under the aegis of the Treasurer’s Office was introduced in 2015. The program aims to expand the number of electric vehicle charging stations found in California by providing small business owners incentives to finance the acquisition and installation of electric vehicle charging station equipment.

A business that installs electric vehicle charging stations not only helps us spread electric vehicle usage, it also can attract new customers. Almost any corporation, partnership, cooperative or other entity with 1,000 or fewer employees is eligible to borrow through the program.

Thanks to a $2 million pilot program funded by the California Energy Commission, loans enrolled in this program can cover the design, development, purchase, and installation of electric vehicle charging stations. This partnership allows CalCAP to provide up to 100 percent coverage to lenders on certain loan defaults.

Enrolled loans are provided coverage for up to 48 months and are limited to $500,000 per borrower. Borrowers with good repayment history may be eligible to receive a rebate of 10 percent to15 percent of the enrolled loan amount payable from the lenders’ loss reserve accounts, depending on whether the EVCS installation is located at a multi-unit dwelling or in a disadvantaged community.

The program benefits electric vehicle users and local governments by providing a financial solution to accelerating the implementation of electric vehicle readiness plans. It helps small businesses acquire capital for electric vehicle infrastructure. And it also helps state and local communities stay in step with local air quality and transportation policy goals.

Green Commuter is the most recent small business to benefit from the CalCAP/EVCS program, securing a private loan for the installation of 57 Level 2 electric vehicle charging stations at six sites in Fresno. All six charging station sites will be open to the public and located in disadvantaged communities. These chargers are integral to the state’s goal of providing electric vehicle access for everyone, including the electric vehicle ride-sharing community.

More information about CalCAP/EVCS is available at: https://www.treasurer.ca.gov/cpcfa/calcap/evcs/summary.asp.

Loans for Residential and Commercial Earthquake Safety Upgrades

Created through legislation authored by Assemblymember Adrin Nazarian (D-North Hollywood) in 2016, CPCFA’s newest program is the CalCAP Seismic Safety Loan Program. It provides loss reserve funding for participating lenders making qualified loans to residential property owners and small business owners who want to make their buildings better able to withstand an earthquake. CPCFA received $10 million in state funds to implement the CalCAP Seismic Safety Program to incentivize private lending to building owners who need to make seismic-safety upgrades to existing commercial buildings and homes, including multi-unit housing structures, and mobile homes that are registered with the California Department of Housing and Community Development.

Proceeds from loans enrolled in the CalCAP Seismic Safety Loan Program may only be used for seismic retrofit construction alterations. The maximum enrolled loan amount is $250,000 and the loan may be enrolled in CalCAP for up to 10 years.

Proceeds from loans enrolled in the CalCAP Seismic Safety Loan Program may only be used for seismic retrofit construction alterations. The maximum enrolled loan amount is $250,000 and the loan may be enrolled in CalCAP for up to 10 years.

Pacific Enterprise Bank recently financed the first CalCAP Seismic Safety loan, making seismic improvements to a five-unit multifamily building in Santa Monica.

Pacific Enterprise Bank recently financed the first CalCAP Seismic Safety loan, making seismic improvements to a five-unit multifamily building in Santa Monica.

For more information on the Seismic Safety program see the program summary page on our website. You will also find information about participating lenders on our participating lender page. Prospective borrowers can also access helpful links to outside resources for seismic safety retrofits through our page dedicated to “Tools for Building Owners.”

Note: Each month we will be sharing information on one of our BCAs and explain how the programs behind the acronym are enhancing the lives of Californians all across the state -- and how you, your family, or your business can share in, and contribute to, California's prosperity

Special thank you to my executive directors who oversee the boards, authorities and commissions that help Californians finance and share in California’s prosperity.