California Small Business Loan Guarantee Program (SBLGP)California Small Business Loan Guarantee Program (SBLGP)

Maximum guarantee

80% of the loan or $5,000,000 of outstanding guarantee liability per business including affiliates, whichever is less

ibank.ca.gov

Maximum loan amount

$20,000,000, unless the IBank Executive Director gives specific written approval for a larger loan

ibank.ca.gov

Maximum guarantee term

7 years

ibank.ca.gov

Guarantee fee

2.5% of the guarantee amount up to $2.5 million, plus 2.25% of the guarantee amount above $2.5 million

ibank.ca.gov

Loan documentation fee

$250

ibank.ca.gov

Covered interest

The guaranteed percentage of accrued and unpaid interest for no more than 90 calendar days

ibank.ca.gov

Loan types

Term loans or lines of credit, short or long term, fixed or variable rate, secured or unsecured, any amortization schedule

ibank.ca.gov

Interest rate

Set by the lender; for SSBCI-supported loans the rate at obligation may not exceed the NCUA interest rate ceiling for federal credit union loans

ibank.ca.gov

Climate Tech guarantees

Same limits, plus a 0.5% evaluation fee on the guarantee amount; borrower must submit a Bay Area Air Quality Management District engineering evaluation of the technology

ibank.ca.gov

Secondary market

Lender may assign the guaranteed portion with IBank approval but must retain at least 10% of the loan and keep servicing

ibank.ca.gov

• The borrower must be a small business with 1 to 750 employees in an eligible industry on the NAICS code list.ibank.ca.gov
• The primary borrower must be a business entity (sole proprietor, LLC, cooperative, corporation, partnership, S corporation or not-for-profit); an individual may be a guarantor or co-borrower but not the borrower. Citizenship and immigration status are not considered.ibank.ca.gov
• Loan proceeds must be used in California for an eligible business purpose, such as start-up costs, working capital, equipment, inventory, building purchase, construction, tenant improvements, business acquisition, franchise fees and bridge loans.ibank.ca.gov
• Ineligible uses include passive real estate investment, any portion of an SBA loan, enrolling the same loan in two credit enhancement programs, repaying delinquent income taxes without a payment plan, repaying trust fund taxes, lobbying and non-business purposes.ibank.ca.gov
• Under SSBCI funding, reimbursing owners, buying out an ownership interest (other than for an ESOP), financing goodwill and residential real estate are not eligible; some of these are allowed under the state-funded track.ibank.ca.gov
• Speculative businesses, pyramid sales, businesses illegal under federal or local law (including cannabis), businesses earning more than one third of revenue from gambling and firms primarily engaged in lobbying are not eligible.ibank.ca.gov
• The business must create or retain at least one full-time-equivalent employee as a result of the loan.ibank.ca.gov

• Eligible lenders are federal or state-chartered banks, savings associations, certified CDFIs, credit unions and Farm Credit System institutions; other institutions need an IBank exception. Finance companies, brokers, payday lenders and private party lenders are not eligible.ibank.ca.gov
• The lender must submit a Lender Certification to Participate every fiscal year. Banks and credit unions need a Bauer rating of at least 3 stars and no regulatory action against them.ibank.ca.gov
• The lender certifies that no principal has been convicted of a sex offense against a minor, and must notify IBank and recertify before funding new SSBCI-supported loans if that changes.ibank.ca.gov
• Guarantees are issued by an FDC, which submits a Conditional Approval Request to IBank before the loan is made. Approvals are valid for 90 calendar days, and final guarantee documents must reach IBank within 30 calendar days of signing.ibank.ca.gov
• IBank's prior written consent is needed for loan modifications such as maturity, amount, collateral release, payment schedule or guarantee percentage changes.ibank.ca.gov
• To claim on a guarantee, the lender sends the borrower two delinquency letters at least 30 days apart (copied to the FDC), liquidates collateral, and delivers a demand with proof of default. The demand must be made no later than noon on the 90th calendar day after the guarantee terminates.ibank.ca.gov
• On a demand, the lender must allow the California Department of Financial Protection and Innovation or an independent auditor to examine its loan files.ibank.ca.gov
• SSBCI-supported loans may not include confessions of judgment, double-dipping fees, or prepayment fees on loans under $100,000. Upfront fees paid by the borrower are capped at 3% for loans over $25,000 and $750 for loans of $25,000 or less.ibank.ca.gov
• For SSBCI-guaranteed loans, lenders must keep all financial records and supporting documents at least through June 30, 2031.ibank.ca.gov

• Credit qualifications and the interest rate are set by the lender's own criteria.ibank.ca.gov
• The FDC loan committee recommends approval only when it determines there is a reasonable chance the loan will be repaid.ibank.ca.gov
• Owners need at least $1.00 of equity in the business at the time of the loan.ibank.ca.gov
• The lender credit memo or FDC write-up must show the ownership structure of all business entities, owner names and ownership percentages, and the borrower's occupancy percentage for commercial real estate purchases.ibank.ca.gov
• Real estate must be owner occupied: at least 51% of an existing building or 60% of a new building. Holding company structures need 100% lease to the operating company, a lease at least as long as the guarantee, and personal guarantees from 20% owners.ibank.ca.gov
• Refinances need a written benefit to the borrower and an eligible original purpose. A same-lender SSBCI refinance also needs new underwriting, a new loan of at least 150% of the balance refinanced and a prior loan paid as agreed.ibank.ca.gov

• Lender Certification to ParticipateAnnual lender enrollment, including principal sex offender certificationOpen
• Lender Use of Proceeds and Conflict of Interest CertificationSSBCI lender certification for each guaranteeOpen
• Lender Sex Offender CertificationSSBCI lender certification for each guaranteeOpen
• Borrower Use of Proceeds and Conflict of Interest CertificationSSBCI borrower certificationOpen
• Borrower Sex Offender CertificationSSBCI borrower certification covering principalsOpen
• Borrower SEDI CertificationSocially and economically disadvantaged individual status for SSBCI reportingOpen
• Borrower Certification for Demographic Related DataDemographic data collection, if applicableOpen
• Loan Guarantee Commitment LetterFDC commitment to guarantee a specific loanOpen
• Loan GuaranteeGuarantee agreement executed by the FDC and lenderOpen
• Default Loan ProceduresLender steps after a borrower defaultOpen
• Request for Payment on a Defaulted GuaranteeClaim form submitted to IBank on a demandOpen
• SSBCI Privacy Notice and Privacy Act StatementNotice given to SSBCI borrowersOpen

• RuleAmended and Restated Directives and Requirements, Small Business Finance Center ProgramsVersion Revised July 27, 2022 (Resolution 22-10)Effective Jul 27, 2022ibank.ca.gov
• GuideSBLGP Policy ManualVersion 12.11.2023ibank.ca.gov
• GuideSBFC Guidance ManualVersion 7.27.2022ibank.ca.gov
• GuideSmall Business Loan Guarantee Program fact sheetVersion Updated December 2022ibank.ca.gov
• Program pageIBank Loan Guarantee Program pageibank.ca.gov

• Feb 25, 2026Information notice

  California receives its third and final SSBCI tranche

  IBank's Executive Director reported to the IBank Board that California received the third and final tranche of SSBCI funds, $410 million, bringing the state's SSBCI total to $1.18 billion. IBank's Small Business Finance Center is deploying these funds through SSBCI-funded loan guarantees.

  What to do: Expect continued SSBCI-funded guarantee capacity; make sure your Lender Certification to Participate is current for the fiscal year and that SSBCI loans meet the SSBCI use-of-proceeds and borrower protection rules.

  Read the source
• Nov 19, 2025Information notice

  SBLGP has obligated 77% of its SSBCI allocation

  IBank reported that its SBFC and venture capital programs, together with CPCFA, had obligated 85% of previously disbursed SSBCI funds, and that the Small Business Loan Guarantee Program had obligated 77% of its allocation, qualifying the state to request the final tranche.

  What to do: No action required; this confirms SSBCI guarantee funding remains available.

  Read the source

Complete the one-page Lender Certification to Participate and email it to IBank (the policy manual gives SBFC@IBank.ca.gov; the program page lists SBFC-Programs@IBank.ca.gov) or submit it through one of the seven partner Financial Development Corporations. IBank reviews the lender and, once approved, the lender works with an FDC on each loan: the FDC requests conditional approval from IBank through the online application portal before the loan closes, then executes the guarantee with the lender. The certification must be renewed every fiscal year.

• IBank Small Business Finance Center (SBFC-Programs@IBank.ca.gov)
• IBank SSBCI questions (SSBCI@IBank.ca.gov)
• Participating lenders and Financial Development Corporations
• FDC and lender forms