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Business California CAP Loan FAQs

1. What is an eligible business?
2. What can a CalCAP loan finance?
3. What types of loans can a lender make?
4. What are the minimum and maximum loan amounts?
5. What are the costs associated with a CalCap loan?
6. What interest rates and other loan conditions are associated with a CalCap loan?
7. Can a CalCap loan be used in conjunction with other loan programs?
8. What is the difference between CalCap and the Small Business Assistance (SBA) 7(a) Guaranty Loan Program?
9.Where do I apply?
10.How do I find more specific information about CalCap?


1. What is an eligible business?

The business must be a small business (500 employees or less) located in and eligible to do business in California. The business may be a corporation, partnership, for-profit, non-profit or a start-up business. Ineligible businesses include, but are not limited to, passive real estate ownership, health clubs, country clubs, suntan facilities, and businesses in which the principal business is the sale of alcohol, tobacco, or firearms per Section 8070(s) of the CalCAP regulations.

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2. What can a CalCAP loan finance?

A CalCap loan finance small business expenses such as working capital, start-up costs, inventory, equipment, land acquisition, and commercial building construction or renovation. CalCap loans cannot finance residential building construction or acquisition, passive real estate ownership, or some types of refinancing.

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3. What types of loans can a lender make?

Virtually any type of commercial loan made by participating financial institutions qualifies, including revolving lines of credit, and secured/unsecured term loans.

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4. What are the minimum and maximum loan amounts?

Participating financial institutions set their own minimums. The maximum loan amount is $2.5 million per business over a three-year period.

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5. What are the costs associated with a CalCap loan?

The borrower pays a nonrefundable premium determined by the lender, ranging from 2% to 3.5% of the loan. The lender matches the borrower’s premium amount. CalCap provides a 100% match on the lender and borrower’s combined premiums. The premium contributions are placed in the lender’s loss reserve account. The loss reserve account provides up to 100% loss coverage on any loan reenrolled in the lender’s CalCap portfolio.

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6. What interest rates and other loan conditions are associated with a CalCap loan?

To change your account information including address and phone number, please visit our Branch Office, and a Representative will assist you with the proper forms to complete. To change your legal name, you are required to bring a photo ID and the proof document of change to the nearest branch office.

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7. Can a CalCap loan be used in conjunction with other loan programs?

Yes, borrowers seeking assistance may be able to obtain a CalCap loan in conjunction with other loan programs such as the California Small Business Loan Guarantee Programs, SBA 7(a) and the SBA 504 program.

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8. What is the difference between CalCap and the Small Business Assistance (SBA) 7(a) Guaranty Loan Program?

Differences include:

      the maximum loan amount for a CalCap loan is $2.5 million.
      A non-profit business with paid employees is CalCap eligible.
      CalCap provides 100% loss coverage on loans enrolled in the program.
      CalCap does not establish any loan underwriting, credit, or collateral requirements.
However, a CalCap loan can be used in conjunction with the SBA 7(a) loan if the requirements of both programs are met.

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9.Where do I apply?

Contact a participating CalCap financial institution listed at www.treasurer.ca.gov/cpcfa.

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10.How do I find more specific information about CalCap?

Contact the CalCap office at:

California Capital Access Program (CalCap)
Eugene Lee, Program Manager
915 Capitol Mall, Room 457
Sacramento, CA 95814
Tel, (916) 654-5610 Fax (916) 657-4821
Email: calcap@treasurer.ca.gov

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