CalCAP Collateral Support (CalCAP CS) General Information

CalCAP CS provides a risk management tool to a participating financial institution (PFI) after a small business borrower (SBB) has applied to a PFI, and the PFI has begun the underwriting process.
Once a loan (or line of credit) is approved by the PFI and accepted for enrollment in CalCAP CS, it is assigned a cash pledge held in an account unique to that loan.
The cash pledge is available to pay the PFI’s claim in the case of default. If no claim is made prior to the expiration of enrollment, the cash pledge is returned to the program to support more loans to small businesses.
Size of Cash Pledge
40% of the loan amount – new feature!
- Previously was 30% or 40%
10% additional if the SBB is located in a severely affected community (SAC)

Including areas with emergency or disaster declarations, or high unemployment, or socially and economically disadvantaged individual (SEDI)-owned businesses

$10,000,000 maximum amount of cash pledge – new feature!
- Previously was $2,500,000
Enrollment Fee

The enrollment fee is based on the term of enrollment and whether the enrolled amount is a loan, bridge loan, or line of credit.
Enrollment fee details are in the technical program summary.

A participating financial institution (PFI) can enroll a loan, or a line of credit, made to a small business borrower (SBB).

Equipment purchase & other capital projects
Inventory purchase & other working capital
Ownership purchase by an ESOP or worker co-op
Real estate acquisition, construction, or renovation of buildings, for occupancy by the SBB (residential excluded)
Start-up costs
Bridge loans

51% of the total jobs of the business are created or retained in California
Or, 51% of the total revenues of the business activity are generated in California

and the SBB is classified as a small business by the U.S. Small Business Administration

Separate loans, for separate purposes, to the same SBB can each be enrolled in a different program