State Treasurer Fiona Ma, IBank invite California financial institutions to participate in Small Business Lending Programs

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State Treasurer Fiona Ma and the California Infrastructure and Economic Development Bank (IBank) will outline opportunities for financial institutions to participate in small business credit enhancement programs. The IBank and the California Pollution Control Financing Authority (CPCFA) increase small businesses’ access to capital by reducing lenders’ risk.

“Entrepreneurship creates a vibrant and innovative economy, and I’m proud that the State Treasurer’s Office and IBank credit enhancement programs are making the California Dream of owning a business more accessible, particularly for people and communities who have historically been denied access to capital,” said Treasurer Ma. “I invite California financial institutions to learn more about opportunities to partner with the State of California to expand small business lending.”

WHO: State Treasurer Fiona Ma, CPA, chair of CPCFA and a member of the IBank board 

WHAT: Webinar for California financial institutions to learn more about opportunities to partner with small business credit enhancement programs through the State Treasurer’s Office and IBank

WHEN: February 2, 2023 – ZOOM information: Register now 

The State Small Business Credit Initiative 2.0 (SSBCI 2.0) is designed to increase small businesses’ access to capital, including businesses in the manufacturing sector, businesses owned by socially and economically disadvantaged individuals (SEDI), and very small businesses (VSBs) characterized as having 10 or fewer employees. California’s SSBCI 2.0 is administered by CPCFA and IBank and funded by a 10-year, $1.181 billion award from the United States Department of the Treasury. The goal of SSBCI 2.0 is that for every $1 of public funds invested in incentivizing financial institutions, $10 in private capital will be invested in small businesses.
The webinar will offer information on how financial institutions can expand their lending to small businesses, with support from the State, through the following programs:
  • The CalCAP for Small Business (CalCAP SB) program supports loans up to $5 million to small businesses with up to 500 employees, for many business needs, including inventory, equipment purchase, and start-up costs. The CalCAP SB program provides a safety net of matching contributions to loan loss reserve accounts for participating financial institutions, incentivizing financial institutions to address the growing and ongoing financing needs of California’s small businesses, and allowing small business borrowers to build relationships in the financial institution community.
  • The CalCAP Collateral Support (CalCAP CS) program supports loans between $50,000 and $20 million to small businesses with up to 750 employees. The CalCAP CS program incentivizes financial institutions to evaluate small businesses on factors other than collateral, by pledging cash to financial institutions to cover the collateral shortfalls for loans made to small business borrowers which meet the financial institutions’ underwriting standards except for having too little collateral. CalCAP CS supports loans for the same business needs as CalCAP SB, with the addition of bridge loans. CalCAP CS’ structure provides increased support for loans to manufacturing and “green” businesses, as well as very small businesses.