Here’s How To Get SSBCI Funding in California

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Skip Team

November 10, 2022 4 min read


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Recovering from the pandemic has been a challenge for small businesses across the country. To help small business owners, the State Small Business Credit Initiative (SSBCI) is distributing $10 billion in funding across all 50 states and territories in the United States. SSBCI applications are officially open in California, and it’s time for small business owners to take advantage.

California has been given $1.2B in SSBCI funding. However, it’s not going to be distributed all at once. The state will give out this funding in three installments over the next eight years. Currently, California is distributing its first installment – $500M.

🚀  Do you need help applying for funding for your small business in California? We can help you with 1 on 1 service. Book a call or sign up now.

What kinds of funding can California businesses receive?

Each state creates its own plan for distributing SSBCI funds, usually through loans, equity investments, or venture capital. Right now, California is distributing funds through loan support programs. However, more programs will open over the next few months and years.

Here is what you will see:

Loan Loss Reserve Program: Under this program, contributions will be matched to loan loss reserve accounts for participating financial institutions (PFIs). This incentivizes PFIs to address the needs of small businesses.

Collateral Support Program:  This program pledges cash to PFIs to cover the collateral shortfalls of loans made to small business borrowers.

Which SSBCI programs are open now in California?

As of today, there are two main SSBCI programs open in California. Learn about them both to find out which one best suits your business needs.

CalCAP for Small Business (CalCAP SB): This is California’s Loan Loss Reserve Program. Loans will be given up to $5,000,000 through PFIs. Then, up to $2,500,000 of the $5,000,000 loan may be enrolled in CalCAP SB. This program is also making an effort to serve high unemployment and other severely affected communities, though business owners who do not belong to those communities are also welcome to apply.

CalCAP Collateral Support (CalCAP CS): Through this collateral support program, small business owners can receive collateral support from a PFI on loans for working capital (including inventory purchases), capital projects (including equipment purchases), start-up costs, bridge loans, and land acquisition, construction, or renovation of buildings. The program offers three different tiers of loan amounts. No matter your qualified loan amount, you can expect the collateral support program to pledge up to 30-40% of the loan amount.

🚀  Do you need help determining which program is the best fit for your California business? We can help you with 1 on 1 service. Book a call or sign up now.

What businesses are eligible for SSBCI funding?

You will encounter different eligibility requirements depending on the program.

Your business is eligible for CalCAP SB if:

  • the business activity funded by the loan will be created and retained in California
  • your employee count is under 500 people
  • your business is classified as a small business by the U.S. Small Business Administration

Your business is eligible for CalCAP CS if:

  • the business activity funded by the loan will be created and retained in California
  • your employee count is under 750 people
  • your business is classified as a small business by the U.S. Small Business Administration

What can the funding be spent on?

  • Startup Costs
  • Working Capital
  • Franchise Fees
  • Equipment Purchase
  • Inventory
  • More

What CAN’T the funding be spent on?

  • Projects with no bank involvement
  • Passive real estate
  • Speculative activities
  • Pyramid sales
  • Stock ownership
  • Activities prohibited by Federal or State law

How to apply for SSBCI funding in California:

To apply for SSBCI funding in California, small business owners will apply directly through participating financial institutions (PFIs). Then, the PFI’s underwriting process will determine if the proposed loan should be enrolled in the CalCAP for Small Business or CalCAP Collateral Support program.

Alternatively, a PFI may approve a proposed loan without enrolling the loan in a CalCAP program.

Small businesses can contact the California Infrastructure and Economic Development Bank and the California Pollution Control Financing Authority to get started as these two entities are overseeing the program.

However, only certain lenders are qualified to give loans. To obtain SSBCI funding, you have to work with an approved lender. Our Client Success Managers can help you identify an approved lender that aligns with your business needs.

If you'd prefer to navigate the lists of lenders yourself, you can find those here:

You can also find an overview of the program on the California Treasurer's website.

Remember, whenever you apply for a loan you are likely going to need to provide ample documentation for your personal finances – and your business’s. If you need help collecting these materials or creating a business plan, our Client Success Managers are here to help.

🚀  If you need assistance with your loan application and/or corresponding documentation, we can help with that! Book a call or sign up now.

Common challenges in applying for SSBCI funding:

The trickiest thing about applying for SSBCI funding in California isn’t that you have to jump through hoops to complete a traditional relief-funding application. Instead, what makes it challenging is that you’re basically applying for a loan, and applying for loans can be stressful and at times overwhelming.

The good news is that these loans are meant to be inclusive, so common barriers to capital like a low credit score won’t disqualify you. However, that doesn’t mean that the process itself is lax. You will still have to take time to understand the terms of the loan you’re applying for and then carry out the proper paperwork and documentation.

Having outside consultation can be empowering. Our Client Success Managers are here to support you through the loan process. You can book a call to start planning your application today.

Applying for SSBCI funding takes time but it has the power to transform your business. Know that here at Skip you always have support.


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