CALIFORNIA CAPITAL ACCESSPROGRAM (CalCAP)
CPCFA’s CalCAP program encourages financial institutions to make loans to small businesses that fall just outside their conventional underwriting standards. CalCAP is a form of loan portfolio insurance that provides up to 100% coverage on certain loan charge offs.
PARTICIPATING LENDERS
Most types of lending institutions are eligible to participate in CalCAP. CalCAP lenders can underwrite their own loans, and minimal paperwork is required. California financial institutions interested in being a part of CalCAP should visit the CalCAP website, fill out an application, and e-mail, mail, or fax it to CPCFA.
- CalCAP sets up a loan loss reserve account for each participating financial institution
- CalCAP makes a contribution to the loan loss reserve account with each enrolled loan
- The loan loss reserve is used to cover charged off loans when a claim is requested.
LOANS FOR SMALL BUSINESSES
- No minimum loan amount
- Primary business and 50% of employees, or income, sales or payroll, must be located in California
- Must have 500 or fewer employees.
- Most small businesses and nonprofits with paid employees qualify.
How it Works: Small business owners who cannot obtain financing through conventional methods may qualify for a CalCAP loan through a CalCAP lender. The borrower applies for a loan and is considered if the request meets the lending criteria established by the financial institution.
California Capital Access Program (CalCAP)
915 Capitol Mall, Suite 457
Sacramento, CA 95814
(916) 654-5610
www.treasurer.ca.gov/cpcfa/cal_cap.asp
