Americans with Disabilities Act Financing Program
The California Capital Access Program (CalCAP) Americans with Disabilities Act (CalCAP/ADA) Financing Program assists small businesses with financing the costs to alter or retrofit existing small business facilities to comply with the requirements of the federal Americans with Disabilities Act (ADA) of 1990.
The CalCAP/ADA Financing Program is a self-sustaining program that will provide a credit enhancement to support private bank loans to small businesses to make required improvements. The businesses that qualify for the program are among the smallest and are at the most at risk.
The California Capital Access Program, administered by CPCFA since 1994, encourages banks and other financial institutions to make loans to small businesses.
CalCAP is a loan loss reserve program which may provide up to 100% coverage on certain loan defaults. By participating in CalCAP, lenders have available to them a proven credit enhancement to meet the financing needs of California's small businesses.
Eligible Uses of Loan Proceeds
Proceeds from loans enrolled in the CalCAP/ADA Financing Program may be used for physically altering or retrofitting existing small business facilities of less than 10,000 square feet if the costs are necessary and allocable for compliance with the Americans with Disabilities Act. Eligible costs may also include the cost of surveying facilities, estimating and planning eligible alterations, and other related expenses but do not include business expansion.
Eligible Small Businesses
California Small Businesses that meet the following criteria are eligible for the CalCAP/ADA Program:
- Has 15 or fewer full-time equivalent employees.
- Has a total annual gross income from all sources of less than one million dollars ($1,000,000). Coming in 2018, income limit will increase to less than $5 million in total annual gross income from all sources.
- Facilities with 10,000 or less square feet.
- Does not provide overnight accommodations.
- Is not engaged in activities prohibited by California Code of Regulations §8070 (s) (4) (A).
Any federal or state-chartered bank, savings association, certified Community Development Financial Institutions (CDFI), or credit union is eligible to participate in CalCAP. A lender must certify that it is in good standing with its regulatory body (Federal Reserve, Federal Deposit Insurance Corporation, Comptroller of Currency, Thrift Supervision, National Credit Union Administration, or state banking authority). Finance Lenders, micro lenders and others regulated by the Department of Business Oversight may also be eligible.
The maximum enrolled loan amount is $50,000 and can be insured for up to five years (though the actual term of the loan can be longer). Lenders set all of the terms and conditions of the loans. Loans can be short or long-term, have fixed or variable rates, be secured or unsecured, and bear any type of amortization schedule.