California Capital Access Program for Small Business (CalCAP SB)
Capital Programs & Climate Financing Authority (CPCFA) — Office of the California State Treasurer (renamed from California Pollution Control Financing Authority effective Jan 1, 2026 under AB 786)
Loans up to $5M (up to $2.5M enrolled)
Loss-reserve credit enhancement
CalCAP for Small Business is a state loan loss reserve (loan portfolio insurance) program that encourages banks, credit unions, and CDFIs to lend to California small businesses that have difficulty obtaining conventional financing. When a participating lender enrolls a loan, the lender and borrower each contribute a small premium (between 2.0% and 3.5% of the loan amount) to the lender's CalCAP reserve account, and the state matches those contributions — building a reserve that can cover up to 100% of certain loan defaults. Because the loss reserve reduces the lender's risk, borrowers who would otherwise be declined can access capital. CalCAP SB is administered by the Capital Programs & Climate Financing Authority (CPCFA) — renamed from the California Pollution Control Financing Authority effective January 1, 2026 under AB 786 — chaired by the California State Treasurer, and uses federal State Small Business Credit Initiative (SSBCI) funds. The borrower does not apply to the state directly — they apply to a participating lender, which underwrites and then enrolls the loan.
- Funding type
- Loan
- Level
- State
- Amount range
- Loans up to $5M (up to $2.5M enrolled)
- Realistic amount
- Most CalCAP-enrolled loans are small business term loans and lines of credit well under the …
- Deadline
- Rolling — there is no application deadline. Loans are enrolled by participating lenders on an ongoing basis as they are made.
- Status
- active
- States
- California
- Payment model
- loan
Who qualifies
- Must meet the SBA definition of a small business and employ fewer than 500 full-time-equivalent employees
- Primary business and at least 51% of employees, or 51% of income/sales/payroll, must be in California
- Business activity must fall within eligible NAICS codes (most for-profit small businesses qualify)
- Must apply to and be approved by a participating financial institution (lender) — the lender enrolls the loan in CalCAP
- Loan must be used for an eligible business purpose in California
What it covers
Eligible expenses
- Working capital
- Land acquisition for the business
- Construction or renovation of buildings
- Startup costs
- Equipment or inventory purchases
- Capital projects
Ineligible expenses
- Passive real estate investment unrelated to the business
- Activities outside eligible NAICS codes
- Uses outside California operations
How to apply
-
1
Find a participating CalCAP lender
Identify a bank, credit union, or certified CDFI that participates in CalCAP for Small Business (CPCFA maintains a participating-lender list). A small business development center can help you get 'loan-ready' and match to the right program.
~3 hrs
-
2
Apply for the loan with the lender
Apply for a term loan or line of credit through the participating lender and provide the financials and documentation the lender requires. The lender underwrites to its own standards.
~6 hrs
-
3
Lender approves and enrolls the loan in CalCAP
After approving and disbursing the loan, the lender enrolls it in CalCAP SB and the lender + borrower premium (2.0%–3.5% each) is paid into the reserve, matched by the state.
~1 hrs
The borrower premium (2.0%–3.5%) can sometimes be paid by the lender or covered by program funds — ask the lender directly, and ask whether your business sits in a 'Severely Affected Community,' which unlocks extra state matching and makes the lender more willing to approve. Because the credit enhancement is what gets a marginal file approved, lead with CalCAP when a conventional loan was declined.
Deadline & timing
CalCAP SB operates continuously. A small business accesses it any time by working with a participating financial institution that enrolls the loan after approval. Availability of state matching funds depends on program funding, which has been refreshed with SSBCI dollars (program information updated March 2026).
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.