State Loan Programs

State loan programs are available to small businesses looking to start or grow their business, or businesses who have been impacted by COVID-19 health and safety restrictions and natural disasters. These state loan programs include: The California Rebuilding Fund, Loan Guarantee Program, Disaster Relief Loan Guarantee Financing, and California Capital Access Program.

As part of the Governor’s long-standing commitment to supporting small businesses access affordable capital, especially during COVID-19, new state loan programs were established to help keep small businesses afloat and mitigate barriers to capital.

Affordable State Loan Programs for Small Businesses impacted by COVID-19

  1. The California Rebuilding Fund
  2. Loan Guarantee Program
  3. Disaster Relief Loan Guarantee Program
  4. California Capital Access Program (CalCAP)
The California Rebuilding Fund

What is it?
The California Rebuilding Fund was created to fill an important capital gap for small businesses to help mitigate the impacts of COVID-19 health and safety restrictions. The California Rebuilding Fund is funded by a private-public (public, private, and philanthropic capital sources) partnership that includes an initial investment of $25 million from the California Infrastructure and Economic Development Bank (IBank). The California Rebuilding Fund is made to serve both micro and small businesses who are the backbone of California’s economy with a specific focus on historically under-resourced communities. The loans awarded to small businesses through the California Rebuilding Fund is secured by the equity interest of the fund’s special purpose vehicle (SPV).

How it works:
The California Rebuilding Fund is a streamlined application process through a central online portal that permits small business applicants to submit a pre-application. Once the application has been vetted for eligibility, the applicant will be matched with a lender in the network who will manage the client relationship and assist the small business owner through the underwriting and loan award process.

For more information about the California Rebuilding Loan Fund, eligibility, and application details, please visit caloanfund.org.

Small Business Loan Guarantee Program

What is it?
The Small Business Loan Guarantee Program (SBLGP) assists small businesses with 1-750 employees by encouraging lenders to provide the much-needed capital for them to start, grow, and scale. The SBLGP is administered by the California Infrastructure and Economic Development Bank’s (IBank) Small Business Finance Center.

The SBLGP is intended to support small businesses that are generating and retaining local jobs, especially in low-to-moderate income communities throughout the State of California. The loan may be used for several business-related expenses, such as inventory, working capital, lines of credit, start-up costs, agriculture, construction, business expansion and more.

How it works:

The SBLGP is facilitated by seven Financial Development Corporations (FDCs) located throughout the state. The FDCs work with over 100 participating lenders who have enrolled loans in the SBLGP. Interested applicants can access the SBLGP’s list of FDCs and list of participating lenders at Participating Lenders | California Infrastructure and Economic Development Bank (IBank) .

For more information about the IBank Small Business Finance Center and its programs, please visit ibank.ca.gov.

California Capital Access Program (CalCAP) for Small Business
What is it?
​California Capital Access Programs (CalCAP) includes multiple programs administered by the California Pollution Control Financing Authority (CPCFA), an authority of the State Treasurer’s Office. CalCAP for Small Business and CalCAP Collateral Support serve a wide array of small business sectors. Other CalCAP programs such as CalCAP CARB serve a specific need such as the purchase of emissions compliant vehicles by small trucking fleets.

How it Works:
The CalCAP programs are credit enhancement programs which provide financial support to participating financial institutions when they make loans to small businesses (most programs 1-500 employees). Small businesses can contact pre-enrolled participating financial institutions or they can request a financial institution with which they have a relationship to enroll.

For more information about the CalCAP programs please visit click here.

GoGreen Business Energy Financing

What is it?

Administered by the State Treasurer’s Office, GoGreen Business offers exceptional financing for energy efficiency improvements to small and medium-sized businesses and nonprofits. Participating finance companies offer below-market interest rates and extended terms on loans, leases, and energy service agreements that meet the diverse needs of business owners. Find a GoGreen Business enrolled contractor or project developer and choose from a broad list of energy saving measures for installation with the added potential for custom projects. To qualify, your property must receive electric or gas service from PG&E, SDG&E, Southern California Edison, or SoCal Gas.

How it Works:

GoGreen Business offers participating finance companies access to a credit enhancement in the form of a loss reserve fund that can cover up to 90% of losses in the event of borrower default. In exchange for this credit enhancement, finance companies are able to offer improved terms for energy efficiency upgrades and approve a broader range of small businesses for credit that they otherwise could.

For more information about GoGreen Business eligibility requirements, project possibilities and next steps please visit gogreenfinancing.com/smallbusiness.

 

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