California Capital Access Program
The Cal CAP (or Calcap) loan program is a commercial loan for CA small businesses who aren't currently able to qualify for SBA or traditional commercial loan financing.
CalCAP loans are an excellent solution for existing businesses whose financial's do not look good for the last few years, but who are "turning the corner" back to profitability.
CalCAP Loan Facts
- The program is for near "bankable" small businesses who have positive cash flow.
- The maximum CalCAP loan amount is $2,500,000.
- The majority of the businesses employees must be located in California.
- Like SBA loans, the business must occupy at least 51% of an existing building's commercial space.*
- Refinances are eligible but certain qualifications must be met.
- The loans have higher fees than both conventional bank and SBA loans.
- The loans cannot be used for passive real estate investment - i.e. investment property
- CalCap loans are similar to SBA loans since they give a bank or lender insurance in the case of default.
- The insurance is a combination of fees paid by borrowers and California Capital Access Program funds.
- The insurance takes a lot of the risk out of the transaction making marginal loans easier to approve.
* For new construction, the business must occupy 67% of the space.
CalCAP Eligible Businesses
The following requirements must be met for a business to be eligible for a CalCAP loan:
- The business must be independently owned and operated
- The business must not be " dominant in it's field of operation"
- The main office must be located in CA
- The officers of the business must reside in CA
- The business (and it's affiliates) must have 100 or fewer employees
- The proceeds of the loan must benefit the economy of California*
* 51% or more of the business revenues and 51% of any jobs must be created in CA.
CalCAP Ineligible Businesses*
- Any "Luxury Business" (country club, etc.)
- Racetrack or other gambling facility
- Liquor stores, beer distributors or any other business that sells alcohol for off site consumption
*Please contact us if you are unsure if your business is eligible
Call us at 1-800-414-5285 to find out more about CalCAP loans.