CaliforniaCapital accessFunding: SSBCIActive

California Capital Access Program for Small Business (CalCAP for Small Business)

CalCAP for Small Business is a loan loss reserve program: when a participating lender enrolls a small business loan, the lender and borrower each pay a premium into a reserve account held for that lender and CalCAP matches it with SSBCI funds. The reserve can reimburse up to 100% of a lender's loss on an enrolled loan, limited to the reserve balance. It covers microloans and loans or lines of credit up to $5 million to California small businesses.

Agency: Capital Programs and Climate Financing Authority (CPCFA), California State Treasurer's Office
Last reviewed: Nov 13, 2026

Key terms

Maximum loan size: $5,000,000 (no minimum); treasurer.ca.gov
Maximum enrolled amount: $2,500,000 per loan; each borrower is limited to $2.5 million enrolled over a 3-year period; treasurer.ca.gov
Lender and borrower premiums: The lender picks a contribution between 2% and 3.5% of the enrolled amount; the borrower pays the same percentage; treasurer.ca.gov
CalCAP contribution: Matches the combined lender and borrower contributions with SSBCI funds; an additional contribution equal to the lender's percentage is added for borrowers in a Severely Affected Community (SAC); treasurer.ca.gov
Maximum total reserve contribution: 14% of the enrolled amount, or 17.5% if the borrower qualifies for SAC; treasurer.ca.gov
Claim coverage: Up to 100% of the claim on an enrolled loan (principal, accrued interest and reasonable out-of-pocket expenses), limited to the lender's reserve balance; treasurer.ca.gov
Maximum enrollment term: 10 years, regardless of loan term; treasurer.ca.gov
Enrollment deadline: Within 15 business days after the first disbursement of the loan; treasurer.ca.gov
Interest rate: Set by the lender; for SSBCI-supported loans the rate may not exceed the NCUA interest rate ceiling for federal credit union loans; treasurer.ca.gov
Loan types: Term loans and lines of credit, secured or unsecured, including bridge loans such as SBA 504 bridge loans; treasurer.ca.gov

Borrower eligibility

The borrower must have 1 to 500 employees and be classified as a small business by the U.S. Small Business Administration.treasurer.ca.gov
The business activity must have its primary economic effect in California: at least 51% of revenues generated in California or at least 51% of jobs created or retained in California.treasurer.ca.gov
Eligible uses include equipment and other capital projects, inventory and working capital, start-up costs, franchise fees, ESOP or worker co-op ownership purchases, and buying, building or renovating real estate the borrower occupies (residential excluded).treasurer.ca.gov
Ineligible uses include businesses illegal under federal law (including cannabis), any portion of an SBA or other government-guaranteed loan, bars and liquor stores, firearms, gambling, tobacco and vape shops, goodwill in acquisitions, passive or residential real estate, reimbursing owners, and repaying delinquent taxes or trust fund taxes.treasurer.ca.gov
Each loan may be enrolled in only one similar state or federal program; separate loans for separate purposes to the same borrower may each go in different programs.treasurer.ca.gov
The borrower must certify the loan is solely for a business purpose and that the borrower is not an executive officer, director or principal shareholder of the lender, a family member of one, or a related interest.treasurer.ca.gov

Lender requirements

What a lender must be or do to make these loans.

Federal or state-chartered banks, savings associations, certified CDFIs and credit unions in good standing with their regulator may participate; other institutions such as microbusiness lenders and finance companies may also be eligible.treasurer.ca.gov
The lender applies with the CalCAP Financial Institution Application, including a description of its board of directors with each member's race, ethnicity and gender, and certifies it is not under a cease and desist order or other sanction that would impair participation.treasurer.ca.gov
After approval, lender staff must attend CalCAP training on eligibility and forms and the lender must provide authorized signers and points of contact before enrolling loans.treasurer.ca.gov
Lenders holding their own reserve account must send a monthly account statement by the 15th of the following month. All lenders must file a quarterly report by the 15th of the month after each quarter; missing reports can lead to suspension and transfer of the reserve to the trustee bank.treasurer.ca.gov
The lender must notify CalCAP within 120 days after charging off an enrolled loan; a claim may be made before collateral is liquidated, and CalCAP pays complete claims within 180 days. Later recoveries must be returned to the reserve.treasurer.ca.gov
An enrolled loan sold, assigned or pledged without the Executive Director's advance written approval is no longer covered. Transfers to another participating lender need a written request at least 30 calendar days in advance.treasurer.ca.gov
SSBCI-supported loans may not include confessions of judgment, double-dipping fees, or prepayment fees on loans under $100,000; upfront lender fees are capped at 3% for loans over $25,000 and $750 for loans of $25,000 or less.treasurer.ca.gov
Loan documents must be retained for five years after the loan's maturity date.treasurer.ca.gov
CPCFA may terminate a lender that enrolls no loans for one year, receives a regulatory sanction, or fails to follow the program law and regulations.treasurer.ca.gov

Underwriting requirements

What the credit file has to show.

The lender sets all loan terms, including interest rate, fees and conditions, and decides which loans to enroll, using its own underwriting.treasurer.ca.gov
Lender certifications must be based on its established due diligence and underwriting standards, and substantiating documentation must be kept in the loan file.treasurer.ca.gov
Refinances must have had an eligible original purpose and may not fund an extraordinary dividend; a same-lender refinance needs a new extension of credit based on new underwriting.treasurer.ca.gov
Loans to insiders of the lender must comply with the insider lending laws that apply to the lender's charter.treasurer.ca.gov

Required documents

CalCAP Financial Institution ApplicationLender application to join CalCAP programsOpen
Certification to Participate in the State Small Business Credit Initiative (SSBCI) ProgramLender SSBCI participation certificationOpen
Certification to Participate in the California Capital Access ProgramLender program participation certificationOpen
Loan Enrollment Application, CalCAP for Small BusinessEnroll a disbursed loanOpen
Participating Financial Institution Lender Certification for CalCAP for Small BusinessLender certifications for each enrolled loanOpen
Borrower Certification for CalCAP for Small BusinessBorrower certifications for each enrolled loanOpen
Socially and Economically Disadvantaged Individuals (SEDI) CertificationSSBCI SEDI statusOpen
Demographics-Related Data CertificationDemographic data for SSBCI reportingOpen
Commercial Real Estate and Refinancing Lender QuestionnaireRequired for real estate and refinance loansOpen
CalCAP Supplemental SAC Contribution FormClaim the Severely Affected Community contributionOpen
SSBCI Privacy NoticeNotice given to the borrowerOpen
Borrower's Agreement to Pay Participating Financial Institution Lender's FeesWhen the borrower pays the lender's share of the premiumOpen
Notification of Change in Loan TermsReport material changes within 15 business daysOpen
Claim ApplicationClaim against the loan loss reserve after charge-offOpen

Governing documents

The rules a file is held to, with the version in force.

What changed

Published changes to this program, newest first.

Feb 25, 2026Information notice
California receives its third and final SSBCI tranche
IBank reported to its board that California received the third and final tranche of SSBCI funds, $410 million, bringing the state total to $1.18 billion, with IBank and State Treasurer's Office programs deploying the funds. CPCFA had said its share of the final tranche would be about $201.9 million.
What to do: No action required; SSBCI matching contributions for CalCAP for Small Business enrollments remain funded.
Read the source
Jan 1, 2026Guide
Revised CalCAP for Small Business lender manual
CPCFA published the Manual for CalCAP for Small Business Program revised January 1, 2026, covering lender eligibility, enrollment forms and timeframes, SSBCI loan provisions, claims and reporting.
What to do: Replace earlier copies of the manual and check enrollment, claim and reporting procedures against the January 2026 version.
Effective Jan 1, 2026Read the source
Jan 1, 2026Statute
CPCFA renamed the Capital Programs and Climate Financing Authority
Under Assembly Bill 786 (2025-2026), the California Pollution Control Financing Authority, which runs CalCAP, was renamed the Capital Programs and Climate Financing Authority effective January 1, 2026. The acronym CPCFA and the programs continue.
What to do: Update agency names in internal documents and vendor records; program forms, contacts and enrolled loans are unaffected.
Effective Jan 1, 2026Read the source
Feb 26, 2025Rule
Permanent rules for selling CalCAP-enrolled loans
The Office of Administrative Law approved CPCFA's certificate of compliance making permanent the emergency amendments to Title 4 CCR Sections 8073 and 8074, which set the process for CalCAP lenders to sell enrolled loans to lenders inside and outside the program. A loan sold without advance written approval is no longer covered by the reserve.
What to do: Before selling, assigning or pledging an enrolled loan, send CalCAP a written request at least 30 calendar days in advance with the loan list and draft transfer documents, and report sales on the quarterly report.
Read the source
Dec 18, 2024Information notice
$203.5 million second SSBCI tranche received for CalCAP
The State Treasurer announced that CalCAP received $203.5 million from the second tranche of SSBCI 2.0 to support its small business programs.
What to do: No action required; the funds support SSBCI matching contributions for enrolled loans.
Read the source

How to participate

Email the CalCAP Financial Institution Application, with the required board description, to CalCAP@treasurer.ca.gov (existing CalCAP lenders file an amended application). After approval, CalCAP sets up a loan loss reserve account at the lender or the CalCAP trustee bank, lender staff complete CalCAP training, and the lender names authorized signers. The lender then enrolls eligible loans after disbursement by sending the enrollment package and proof of premium deposit within 15 business days of first disbursement.

Last reviewed Nov 13, 2026. A summary of official sources, linked beside each fact, kept current by Kita each week. Program rules change: confirm against the current source before you rely on a figure. Not legal advice. Spotted something out of date? Email hello@kita.ai.

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