California Capital Access Program (CALCAP)

The California Capital Access Program loans up to $2.5 million to small businesses that fall just outside most banks underwriting standards.

These loans are very flexible - they can be short or long-term, secured or unsecured, and have fixed or variable rates. The borrower pays a premium - just like an insurance payment - to get the loan. If you are located in a state enterprise zone the State may pay all or part of the premium.

Borrowers must be a small business (same criteria as the SBA), with its primary business and 50% of its business in California, and the loan proceeds must be used to grow the business within California. Loans cannot be used for luxury or gambling facilities or businesses which sell alcohol to be consumed off-site.

Here is a link to the banks that participate in the CALCAP program.