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California Pollution Control Financing Authority

CalCAP for Small Business (CalCAP SB) General Information

CalCAP SB Program Description

  • CalCAP SB provides a risk management tool to a participating financial institution (PFI) after a small business borrower (SBB) has applied to a PFI, the PFI has underwritten the loan (or line of credit) and determined a risk management tool will be useful and that the loan fits the eligibility criteria for CalCAP SB, and the PFI has disbursed the loan to the SBB.
  • After a loan (or line of credit) is disbursed by the PFI, the PFI has applied for enrollment in CalCAP SB, and enrollment has been approved, contributions for that loan are added to the loan loss reserve assigned to that PFI.
  • The accumulated loan loss reserve is available to pay up to 100% of the PFI’s claim for each enrolled loan, during the term of enrollment, in the case of default. If no claim for an enrolled loan is made prior to the expiration of enrollment, the contributions remain in the loan loss reserve.
  • Contribution Amounts
    • PFI selects the amount of the loan to enroll ($5 million maximum loan size; $2.5 million maximum enrolled amount)
    • PFI selects contribution percentage between 2 and 3.5%
    • PFI and SBB each contribute the selected percentage of the enrolled loan amount
    • CalCAP SB matches the PFI’s and SBB’s contribution
    • Additional contribution match (equal to the PFI’s contribution) if the SBB is located in a severely affected community (SAC)
      • Including areas with emergency or disaster declarations, or high unemployment
    • Maximum combined contributions, without SAC: 14%
    • Maximum combined contributions, if eligible for SAC: 17.5%

Eligibility for Enrollment of Loan in CalCAP SB

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

  • Loan or Line of Credit for Many Business Needs
    • 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
  • Size of Loan
    • No minimum loan size
    • $5,000,000 maximum loan size
    • $2,500,000 maximum enrolled amount
  • Most Business Sectors
  • 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
    • and the SBB is classified as a small business by the U.S. Small Business Administration
  • Each loan may be enrolled in only one similar state or federal program
    • Separate loans, for separate purposes, to the same SBB can each be enrolled in a different program

CalCAP SB Technical Program Summary

For more information, refer to the technical program summary.