CalCAP Loan Participation Program (CalCAP LPP)
An SSBCI-funded program in which CPCFA buys a participation, typically 25% to 50%, in small business loans made by participating California lenders, at a fixed or below-market rate that lowers the borrower's cost. The statewide program is run through a third-party administrator, Community Capital Alliance (CCA), which works with community banks and minority depository institutions. It supports lines of credit, SBA 504 bridge loans and term loans of up to $20 million.
- Last reviewed
Key terms
- Lines of credit
- Note term 6 to 24 months; participation 40% to 50%; SSBCI participation up to $5 million
- treasurer.ca.gov
- SBA 504 bridge loans
- Note term 2 to 18 months; participation up to 40%; SSBCI participation up to $5 million
- treasurer.ca.gov
- Term loans
- Note term 1 to 10 years; participation 25% to 35%; SSBCI participation up to $5 million
- treasurer.ca.gov
- Interest rate
- May not exceed the NCUA interest rate ceiling for federal credit union loans at obligation and throughout the loan term
- treasurer.ca.gov
- Servicing
- The lender services the loan under CalCAP rules and remits the program's share of payments to CPCFA
- treasurer.ca.gov
Borrower eligibility
- The borrower, together with affiliates, must have 750 or fewer employees and be classified as a small business by the U.S. Small Business Administration.treasurer.ca.gov
- The borrower must have its primary business 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
- Loan purposes must comply with the U.S. Treasury SSBCI Capital Program Policy Guidelines.treasurer.ca.gov
- The program focuses on very small businesses (nine or fewer employees, including owners) and businesses owned by socially and economically disadvantaged individuals, and includes a rate buy-down to reduce borrowing costs.treasurer.ca.gov
Lender requirements
What a lender must be or do to make these loans.
- Currently, depository banks headquartered in California can participate in the statewide LPP administered by Community Capital Alliance.treasurer.ca.gov
- Loans must be made by a Participating Financial Institution as defined in CalCAP regulation Section 8070(m).treasurer.ca.gov
- Lenders join by executing a Master Loan Participation Agreement in a form approved by CPCFA and signing the required exhibits, then submit eligible loans with borrower certifications and SSBCI compliance documentation.treasurer.ca.gov
- The lender must provide performance and compliance reports as required for U.S. Treasury SSBCI reporting.treasurer.ca.gov
Underwriting requirements
What the credit file has to show.
- The lender specifies the form and amount of the financing (line of credit, SBA 504 bridge loan or term loan) within the program's term and participation limits.treasurer.ca.gov
- The terms of the participation program may not contradict or override the existing CalCAP requirements in Title 4 CCR Article 7.treasurer.ca.gov
Governing documents
The rules a file is held to, with the version in force.
- RuleCalifornia Code of Regulations, Title 4, Section 8078.36 (Alternative Funding Source)Version Permanent regulations approved 04/30/2025treasurer.ca.gov
- Policy noticeCPCFA Resolution No. 25-02-04 and Attachment A, Loan Participation Program Terms and ConditionsVersion October 21, 2025Effective Oct 21, 2025treasurer.ca.gov
- Program pageCalCAP Loan Participation Program pagetreasurer.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. CPCFA had planned to use SSBCI funds for the Loan Participation Program alongside CalCAP for Small Business and Collateral Support.
What to do: No action required.
- Policy notice
CPCFA board approves the Loan Participation Program and initial terms
The CPCFA board adopted Resolution No. 25-02-04 establishing the Loan Participation Program within CalCAP with $150 million of SSBCI 2.0 funds. It set participation of up to 50% per loan, capped at $5 million, on loans up to $20 million, with separate terms for lines of credit, SBA 504 bridge loans and term loans and an NCUA rate ceiling.
What to do: California-headquartered depository banks interested in participating should contact Community Capital Alliance about the Master Loan Participation Agreement.
Effective Oct 21, 2025Read the source - Rule
Permanent regulation for alternative funding sources (loan participation)
The Office of Administrative Law approved CPCFA's certificate of compliance making Title 4 CCR Section 8078.36 permanent. The section lets CPCFA deploy external funds, including SSBCI funds for a loan participation project, under terms adopted by board resolution and with a third-party administrator.
What to do: No action required; program terms are set by the board resolution.
How to participate
California-headquartered depository banks contact Community Capital Alliance (connect@teamcca.com), the statewide LPP administrator, or use the program website listed on the CPCFA page. Approved lenders execute a Master Loan Participation Agreement with CPCFA and then submit eligible loans with borrower certifications and SSBCI compliance documents for participation.
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 LPP on Kita.
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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 LPP requirements and flags what is missing before it reaches review.
Every figure links to the page it came from, so it can be checked.