CalCAP Collateral Support Program (CalCAP CS)
CalCAP Collateral Support places a cash pledge, generally 40% of the loan, in an account tied to a single loan so a lender can make a loan to a creditworthy California small business that is short on collateral. The pledge can pay up to 100% of the lender's loss, limited to the account balance, and is returned to the program at the end of the support term. It is funded with SSBCI and state funds and covers loans from $25,000 to $20 million.
- Last reviewed
Key terms
- Additional pledge
- 10% of the loan amount, at no cost, if the borrower is in a Severely Affected Community or is owned by socially and economically disadvantaged individuals (SEDI)
- treasurer.ca.gov
- Enrollment fee (term loans and lines of credit)
- Percentage of the main cash pledge by term: 0.50% up to 12 months; 0.75% for 12.1 to 24 months; 2.00% for 24.1 to 36 months; 2.75% for 36.1 to 48 months; 3.00% for 48.1 to 60 months; $1,000 minimum
- treasurer.ca.gov
- Enrollment fee (bridge loans)
- 0.50% up to 24 months; 1.50% for 24.1 to 36 months; 2.25% for 36.1 to 48 months; 2.50% for 48.1 to 60 months; $1,000 minimum
- treasurer.ca.gov
- Line of credit renewals
- 1% of the main cash pledge for each annual renewal, up to 5 years from first disbursement
- treasurer.ca.gov
- Claim coverage
- Up to 100% of the loss (charged-off principal net of liquidated collateral, reasonable collection expenses and accrued unpaid interest), limited to the collateral support account balance
- 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
Borrower eligibility
- The borrower must have 750 or fewer employees (including affiliates) and be classified as a small business by the U.S. Small Business Administration.treasurer.ca.gov
- The business must have its primary economic effect in California: at least 51% of jobs created or retained in California or at least 51% of revenues generated in California.treasurer.ca.gov
- Eligible uses include start-up costs, working capital, franchise fees, equipment, inventory, owner-occupied commercial real estate purchase, construction or renovation, ESOP or worker co-op ownership purchases, and bridge loans such as SBA 504 bridge loans.treasurer.ca.gov
- Ineligible uses include non-business purposes, passive or residential real estate, reimbursing owners, repaying delinquent or trust fund taxes, and any portion of an SBA or other government-guaranteed loan.treasurer.ca.gov
- Prohibited activities include adult entertainment, firearms, tobacco, bars and liquor stores, cannabis and gambling.treasurer.ca.gov
- Each loan may be enrolled in only one similar state or federal program.treasurer.ca.gov
Lender requirements
What a lender must be or do to make these loans.
- Federal or state-chartered banks, savings associations, federally certified CDFIs and credit unions in good standing with their regulator may participate by submitting the CalCAP Financial Institution Application; existing CalCAP lenders submit an amended application.treasurer.ca.gov
- The lender must submit a Collateral Support Request with a risk assessment and receive Initial Approval before disbursing the loan. Initial Approval is valid for 90 days.treasurer.ca.gov
- Before disbursement, the lender opens a separate CPCFA-owned interest-bearing account for each loan and deposits the closing fee. Within 15 business days of closing, it submits final loan information, the SSBCI lender and borrower certifications and proof of the deposit.treasurer.ca.gov
- Lenders send monthly bank statements for each collateral support account by the 15th of the following month. Quarterly reports are required only for loans in default.treasurer.ca.gov
- On default the lender files a Default Notification. Within 30 calendar days after charge-off and collateral liquidation, whichever is later, it files a claim with the payment history, collection history and liquidation results.treasurer.ca.gov
- The collateral support may not be claimed instead of pursuing pledged collateral; all pledged collateral must be liquidated first, using the lender's usual methods.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
Underwriting requirements
What the credit file has to show.
- The lender must certify the borrower is otherwise creditworthy with a strong credit profile that meets all of the lender's regular underwriting policy except for a collateral shortfall.treasurer.ca.gov
- The risk assessment must include the collateral value based on an industry standard such as an appraisal, the lender's valuation of collateral, the borrower's risk rating, a summary of the relationship and business history, and cash flow and financial analysis.treasurer.ca.gov
- The request must describe all other available collateral, including co-guarantors', and confirm it will be pledged and liquidated before any claim on the collateral support.treasurer.ca.gov
- CPCFA's Executive Director makes the final decision on support terms and may impose conditions on eligibility, cash flow, collateral value and the liquidation plan.treasurer.ca.gov
- Refinances follow the CalCAP for Small Business limits: the original loan must have had an eligible purpose, and a same-lender refinance needs a new extension of credit based on new underwriting.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
- Request, CalCAP Collateral SupportRequest Initial Approval before the loan is fundedOpen
- Participating Financial Institution Lender Certification, CalCAP Collateral SupportLender certifications at final enrollmentOpen
- Borrower Certification Form for Loan Enrollments, CalCAP Collateral SupportBorrower certifications at final enrollmentOpen
- Socially and Economically Disadvantaged Individuals (SEDI) CertificationSEDI status and additional pledgeOpen
- Demographics-Related Data CertificationDemographic data for SSBCI reportingOpen
- SSBCI Privacy NoticeNotice given to the borrowerOpen
- Default Notification, CalCAP Collateral SupportNotify CalCAP of a defaultOpen
- Claim Application, CalCAP Collateral SupportClaim against the collateral support accountOpen
Governing documents
The rules a file is held to, with the version in force.
- RuleCalifornia Code of Regulations, Title 4, Division 11, Article 7, Sections 8078.29 to 8078.35 (Collateral Support Program)Version Permanent regulations approved 04/30/2025treasurer.ca.gov
- GuideManual for CalCAP Collateral SupportVersion Revised 01.01.2026Effective Jan 1, 2026treasurer.ca.gov
- Program pageCalCAP Collateral Support Technical Program Summarytreasurer.ca.gov
What changed
Published changes to this program, newest first.
- Information notice
California receives its third and final SSBCI tranche
IBank reported to its board that California received the third and final SSBCI tranche, $410 million, bringing the state total to $1.18 billion, with IBank and State Treasurer's Office programs deploying the funds.
What to do: No action required; SSBCI cash pledges for Collateral Support enrollments remain funded.
- Guide
Revised CalCAP Collateral Support manual
CPCFA published the Manual for CalCAP Collateral Support revised January 1, 2026. It states a 40% main cash pledge, a 10% additional pledge for SAC or SEDI borrowers, a $10 million maximum enrolled amount per borrower, and that quarterly reports are needed only for loans in default.
What to do: Use the January 2026 manual for requests, closing and claims, and confirm monthly statements are sent for each collateral support account.
Effective Jan 1, 2026Read the source - Statute
CPCFA renamed the Capital Programs and Climate Financing Authority
Under Assembly Bill 786 (2025-2026), the California Pollution Control Financing Authority was renamed the Capital Programs and Climate Financing Authority effective January 1, 2026. The acronym CPCFA and the CalCAP programs continue.
What to do: Update agency names in internal documents; collateral support accounts and enrolled loans are unaffected.
Effective Jan 1, 2026Read the source - Information notice
$203.5 million second SSBCI tranche received for CalCAP
The State Treasurer announced that CalCAP received $203.5 million from the second SSBCI 2.0 tranche, describing CalCAP's cash pledges to cover collateral shortfalls.
What to do: No action required.
How to participate
Submit the CalCAP Financial Institution Application to CalCAP@treasurer.ca.gov (an amended application if already in another CalCAP program). For each loan, send a Collateral Support Request and risk assessment before disbursement, wait for Initial Approval, open the loan's collateral support account and deposit the closing fee, then fund the loan and submit final enrollment documents within 15 business days. CalCAP's trustee bank then wires the cash pledge into the account.
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.
Run CalCAP Collateral Support on Kita.
Kita underwrites the whole file, configured to your own credit policy and to the programs you run. Your underwriter keeps the decision.
Tax returns, bank statements and financials, as PDFs, scans or photos.
Period over period, with debt service coverage computed from the spread.
Tests the file against CalCAP Collateral Support requirements and flags what is missing before it reaches review.
Every figure links to the page it came from, so it can be checked.