For small businesses
What is the CPCFA Loan Participation Program?
The CPCFA Loan Participation Program is a state-backed small business lending program funded through the federal State Small Business Credit Initiative (SSBCI). The program is sponsored by the Capital Programs and Climate Financing Authority (CPCFA), an authority within the California State Treasurer's Office, and administered by Community Capital Alliance (CCA). It supports California small businesses by participating in loans made through a network of community lenders.
Is the CPCFA LPP a grant or a loan?
The CPCFA LPP is a loan participation program, not a grant. Funds must be repaid to the lender. The program is designed to expand access to capital by helping participating lenders offer more flexible financing terms, which may include a reduced interest rate. Program funds are federally sourced, with no cost to California taxpayers.
What businesses are eligible?
Your business may be eligible if it meets the following basic requirements:
- Has between 1 and 750 employees
- Is registered and in good standing with the California Secretary of State
- Has its principal place of business in California, with at least 51% of operations and employees located in-state
- Qualifies as a small business under SBA size standards for its industry
- Is seeking a loan between $100,000 and $20 million for use in California
- Has no conflict of interest with an officer, director, or principal shareholder of the lending bank
What business structures are eligible?
Sole proprietorships, LLCs, corporations and S-Corporations, partnerships, cooperatives, not-for-profits, employee-owned entities, and independent contractors.
Are there businesses or uses that cannot participate?
Yes. Ineligible business types include: lending, investing, or insurance services; gambling or pyramid sales; cannabis or tobacco-related businesses; passive real estate investment; adult entertainment; liquor stores, massage parlors, saunas/hot tubs, racetracks, and gun clubs/shooting ranges; and any business engaged in activities illegal under federal, state, or local law.
Ineligible uses of proceeds include: passive real estate investment, repaying delinquent taxes (unless on a payment plan), purchasing an ownership interest in the business (with limited exceptions), lobbying, speculative activities, and any purpose outside of California.
What loan amounts can the program support?
The CPCFA LPP may support eligible loans from $100,000 to $20 million. Loan amount, structure, and approval are determined by the participating lender. The maximum term is 10 years, with balloon payments allowed, and amortization may extend up to 25 years.
How is my interest rate determined?
Your participating lender sets the interest rate based on its standard loan review and pricing process. The maximum rate a participating lender may charge is WSJ Prime Rate + 6.5%. Through the program, CPCFA participates in a portion of the loan at a lower rate, resulting in a lower rate on your loan.
Are there any fees to participate?
No. There are no program fees charged to borrowers or lenders.
How do I get started?
Loans are made through participating community banks — not directly through CPCFA or CCA. Email calcap_lpp@treasurer.ca.gov with questions, or contact a participating lender to begin your application.
Will enrolling in the CPCFA LPP slow down my loan closing?
No. The enrollment process is designed to run concurrently with your lender's standard closing process. Once your lender submits the eligibility documents, CCA reviews promptly and issues a Participation Certificate.
What if my business doesn't qualify yet?
The CPCFA LPP serves businesses seeking loans of $100,000 or more with established financial history. If your business is at an earlier stage or has smaller capital needs, alternative California programs may be a better starting point. Click here to learn more about other programs.
SEDI & demographic information
What is SEDI?
SEDI stands for Socially and Economically Disadvantaged Individual, a term used by the U.S. Department of the Treasury for SSBCI program reporting. SEDI information may relate to business ownership, geography, income, or other factors used for federal program reporting and participation.
What is voluntary program reporting information?
Some program documents include optional questions about business ownership, location, and demographics. This information supports federal program reporting, helps evaluate whether the program is reaching a broad range of California small businesses, and may help determine whether the loan is eligible for a higher CPCFA participation percentage. Providing this information is voluntary. Choosing not to provide it will not affect the lender's loan approval decision.
Is this information required?
No. SEDI and demographic information is voluntary. Choosing not to provide it will not affect the lender's loan approval decision.
How is this information used?
The information is used for federal program reporting, program evaluation, and determining whether the loan may be eligible for a higher CPCFA participation percentage. It is not used to make the lender's loan approval decision.
Privacy
What happens to my personal information?
Information collected through the program may be shared with the U.S. Department of the Treasury for oversight, compliance, and reporting purposes. Demographic and SEDI data may only be used for SSBCI program purposes and cannot be used for marketing or sold to third parties.
For lenders
How does my bank become a program lender?
If your bank is a depository community bank or minority depository institution headquartered in California and is interested in joining the program, please contact CCA at connect@teamcca.com to begin the enrollment conversation.
Does this program change our underwriting standards?
You retain full discretion over your own underwriting and rate-setting (capped at WSJ Prime + 6.5%). The program participates in qualifying loans your bank has already approved.
How much can CPCFA participate in a loan?
CPCFA may participate in 25–50% of the loan amount, up to $5 million per loan.
Are there fees for lenders?
No program fees. You may charge origination and documentation fees up to 1.00% of the loan.
Will this slow our closings?
No. CCA's eligibility confirmation is built to keep pace with your closing timeline.
About the program
Where does the funding come from?
$150 million in federal funds, allocated by CPCFA through the U.S. Department of the Treasury's State Small Business Credit Initiative (SSBCI).
Who administers the program?
Community Capital Alliance (CCA), on behalf of CPCFA.
Is the program first‑come, first‑served?
Yes — funds are available on a first-come, first-served basis.
Is the program statewide?
Yes. The CPCFA LPP is available across California.
