California Relief Funding
No COVID relief grants are currently being offered by the State of California at this time. To look for other grant opportunities for your business, visit the California Grants Portal
The State of California is currently offering multiple lending programs to help alleviate the impact of COVID-19 on small businesses.
The California Rebuilding Fund was created to fill an important capital gap for small businesses to help mitigate the impacts of COVID-19 health and safety restrictions. The California Rebuilding Fund is funded by a private-public (public, private, and philanthropic capital sources) partnership that includes an initial investment of $25 million from the California Infrastructure and Economic Development Bank (IBank). The California Rebuilding Fund is made to serve both micro and small businesses who are the backbone of California’s economy with a specific focus on historically under-resourced communities. The loans awarded to small businesses through the California Rebuilding Fund is secured by the equity interest of the fund’s special purpose vehicle (SPV).
The California Rebuilding Fund is a streamlined application process through a central online portal that permits small business applicants to submit a pre-application. Once the application has been vetted for eligibility, the applicant will be matched with a lender in the network who will manage the client relationship and assist the small business owner through the underwriting and loan award process.
The Loan Guarantee Program assists small businesses with 1-750 employees by encouraging lending to these businesses who often face substantial barriers in accessing capital to start, grow, and scale. The Loan Guarantee Program (previously known as the Small Business Loan Guarantee Program) is administered by the California Infrastructure and Economic Development Bank’s (IBank) Small Business Finance Center.
The Loan Guarantee Program is intended to support small businesses that are generating and retaining local jobs, especially in low- to moderate-income communities throughout the State of California. Eligibility for the loan is set by the lender. The loan may be used for several business related expenses, such as inventory, working capital, lines of credit, start-up costs, agriculture, construction, business expansion and more.
Interested applicants would need to contact the IBank Small Business Finance Center Team by email, to put you in touch with one of the Financial Development Corporation (FDC) partners to provide you with technical assistance. Email the IBank Small Business Finance Center Team
The Disaster Relief Loan Guarantee Program is managed by the California Infrastructure and Economic Development Bank’s (IBank) Small Business Finance Center and intended to support small businesses who suffered economic injury and impacts by COVID-19. The Disaster Relief Loan Guarantee Program was created to help small businesses who face barriers to access capital which includes those who are not eligible for federal disaster funds, as well as immigrant and low-wealth communities.
Eligible small businesses include those located in California and with 1-750 employees. Small businesses and nonprofits who have been negatively impacted by COVID-19 may be eligible for the disaster relief loan guarantee program. It is important to know that the loan may be guaranteed for up to 7 years and cover 95% of the loan. If the small business is approved for a loan, they will have the opportunity to negotiate the interest rates with the lender. The lender also sets the qualifications. The funds must be used to either continue operating the business or go towards restoring the “economic injury” caused by the COVID-19 pandemic.
Small businesses who are eligible for the Disaster Relief Loan Guarantee Program can apply directly through one of the participating lenders. List of Participating Lenders
The California Capital Access Program for Small Business (CalCAP SB or Program), administered by the California Pollution Control Financing Agency within the California State Treasurer’s Office, encourages banks and other financial institutions to make loans to small businesses that have difficulty obtaining financing. If you own a small business and need a loan for start-up, expansion or working capital, you may receive more favorable loan terms from a lender if your loan is enrolled in the CalCAP Loan Loss Reserve Program. This program helps communities by providing financing to businesses that create jobs and improve the economy.
CalCAP is a loan loss reserve program which may provide up to 100% coverage to participating lenders on losses as a result of certain loan defaults. With CalCAP portfolio support, a lender may be more comfortable underwriting small business loans.
Borrowers will need to contact a Participating Lending Institution to start the CalCAP loan enrollment process: List of Participating Lenders