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?
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SSBCI 2.0 funds are used to support programs that increase access to capital for small businesses and that provide technical assistance to small businesses.
Eligible jurisdictions, including California, can use SSBCI 2.0 funds to support the following types of programs:
Capital Access or Loan Loss Reserve: 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: CPCFA plans to begin offering in 2025
Venture Capital: offered in California through IBank’s Venture Capital Access program
Technical Assistance for small businesses: offered in California via the California Office of the Small Business Advocate (CalOSBA) SCALE: Success Capital Access Leadership for Entrepreneurs
- 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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Programs supporting small business lending, 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 coaching at small business centers to become “loan-ready” and compare options to determine which program(s) is the best fit for their needs.
The California Office of the Small Business Advocate (CalOSBA) maintains a network of small business centers and is using the SSBCI 2.0 Technical Assistance grant to grow SCALE: Success Capital Access Leadership for Entrepreneurs.
- 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 which is currently 18%; 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 maintains a network of small business centers where small businesses can use coaching to become “loan-ready” and compare options to determine which program(s) is the best fit for their needs.
CalOSBA is using the SSBCI 2.0 Technical Assistance funding to grow SCALE: Success Capital Access Leadership for Entrepreneurs.
The Minority Business Development Agency’s SSBCI Capital Readiness Plan funds accelerators and incubators for entrepreneurs nationwide.
- 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.