Business Financing Programs
Industrial Development Bonds
Industrial Development Bonds provide tax-exempt financing of up to $10 million for qualified manufacturing and processing companies. Proceeds may finance the acquisition, construction, rehabilitation or equipping of eligible facilities. Because interest earned by investors is generally exempt from federal income tax, borrowers may benefit from lower interest rates.
SBA 504 Loans
The SBA 504 Loan Program provides long-term, fixed-rate financing for major fixed assets, including owner-occupied real estate, buildings, machinery and equipment. Financing is delivered through a Certified Development Company and a participating lender. A typical structure can finance up to 90% of eligible project costs, although additional borrower equity may be required. The SBA-backed portion can reach $5.5 million for qualifying projects.
SBA 7(a) Loans
The SBA 7(a) program provides government-guaranteed loans of up to $5 million for business acquisition, expansion, working capital, equipment, real estate and refinancing eligible debt. Loans are made by participating lenders, with the SBA guaranteeing a portion of the financing.
California Capital Access Program
The California Capital Access Program encourages participating financial institutions to lend to small businesses that have viable business plans but may not meet conventional underwriting requirements. CalCAP uses loan-loss reserves and collateral support to reduce lender risk. CalCAP for Small Business can support loans and lines of credit up to $5 million.
CalCAP Collateral Support
CalCAP Collateral Support helps qualified small businesses obtain financing when insufficient collateral is the primary barrier to loan approval. The program pledges cash to participating lenders to cover part of the collateral shortfall on eligible loans and lines of credit ranging from $25,000 to $20 million.
California Small Business Loan Guarantee Program
California’s Small Business Loan Guarantee Program helps businesses obtain financing by providing guarantees to participating lenders. Financing may support startup costs, expansion, equipment, working capital and real estate. The guarantee reduces lender risk and can help qualified businesses that might not otherwise have access to conventional financing.
California Small Business Loan Match
California Small Business Loan Match is a no-cost online service that connects California businesses with participating mission-based lenders. Businesses complete a brief questionnaire and are matched with lenders offering state-supported financing through IBank’s Small Business Loan Guarantee Program.
Jump Start Loan Program
The Jump Start Loan Program provides small loans and technical assistance to eligible entrepreneurs and businesses in economically disadvantaged communities. The program is delivered through participating Financial Development Corporations, with availability depending on the service area and participating lender.
Recycling Market Development Zone Loan Program
The RMDZ Loan Program provides financing to California businesses that use materials recovered from the waste stream or undertake eligible recycling, repair, reuse and waste-reduction activities. Loans may finance machinery, equipment, facilities, real estate and eligible working-capital costs. Businesses must be located within a designated Recycling Market Development Zone.
GoGreen Business Financing
GoGreen Business Financing connects eligible California businesses with private financing for approved energy-efficiency and clean-energy improvements. Financing may cover HVAC systems, refrigeration, lighting, building controls, water heating, solar and battery storage, and other qualifying upgrades. Eligibility depends partly on the business’s utility provider.
Export Financing
Export-Import Bank of the United States
The Export-Import Bank is the official export credit agency of the United States. EXIM provides export credit insurance, working-capital guarantees and financing assistance that helps U.S. businesses sell products and services internationally while reducing the risk of nonpayment by foreign buyers.
SBA Export Loans
The SBA offers specialized export financing to help qualifying small businesses fund export orders, inventory, production, working capital and international expansion. Programs include Export Express, Export Working Capital and International Trade loans.
Community and Project Financing
New Markets Tax Credit Program
The federal New Markets Tax Credit Program attracts private investment to qualifying low-income communities. Businesses and development projects generally access below-market or flexible financing through a certified Community Development Entity rather than applying directly for the tax credit. The investor receives a federal tax credit equal to 39% of the qualified investment over seven years.
USDA Business and Industry Loan Guarantees
The USDA Business and Industry Loan Guarantee Program supports business development in eligible rural communities. USDA guarantees loans made by participating lenders for real estate, equipment, business acquisition, working capital and other qualified purposes. This program is particularly relevant to many Central Valley communities.
Environmental and Equipment Programs
CARB Business and Equipment Funding
The California Air Resources Board and local air districts offer grants, vouchers and financing assistance for qualifying clean vehicles and equipment. Programs include the Clean Off-Road Equipment Voucher Incentive Project, FARMER Program and Carl Moyer Program. Eligible equipment and funding availability vary by program and air district.