Expanding Access to Capital: CalCAP Launches New Loan Participation Program
State Treasurer Fiona Ma (center) celebrates the launch of the LPP program with State Treasurer’s Office staff and representatives from Community Capital Alliance, CalTrans, and participating California community banks. (Photo credit: State Treasurer’s Office)
California small businesses have a new financing tool designed to help them grow, create jobs, and compete for new opportunities.
The California Capital Access Program (CalCAP), administered by the Capital Programs & Climate Financing Authority (CPCFA) within the State Treasurer’s Office (STO), has officially launched its new Loan Participation Program (LPP) – a $150 million initiative funded through the U.S. Treasury’s State Small Business Credit Initiative (SSBCI). LPP creates a new public-private partnership that expands access to affordable financing for California’s small businesses by sharing lending risk with participating community banks.
Unlike a traditional loan guarantee program, LPP allows CPCFA to purchase between 25 and 50 percent of an eligible loan, enabling lenders to make more loans while reducing borrowing costs for businesses. The program supports lines of credit, term loans, and interim loans ranging from $100,000 to $20 million, providing businesses with the working capital they need to stabilize operations, expand, purchase equipment, or pursue new contracts.
To celebrate the launch, State Treasurer Fiona Ma welcomed representatives from Community Capital Alliance (CCA), the program’s third-party administrator, along with leaders from participating California community banks during a meet & greet at the STO in June 2026. The gathering recognized the strong partnerships that made LPP possible and highlighted the critical role community lenders play in supporting local businesses and strengthening California’s economy.
During the event, Treasurer Ma noted that small businesses comprise nearly 98 percent of California businesses and that reliable access to working capital is often essential for entrepreneurs and contractors looking to grow. She discussed how the LPP represents a new model of public private partnership that increases lending capacity and helps more businesses access the financing they need to succeed.
The program launched with an initial network of participating California community banks, with additional lenders expected to join in the coming months. It also complements existing CalCAP financing tools, including the Loan Loss Reserve and Collateral Support programs, as well as other state small business financing resources, creating even more pathways for entrepreneurs to access capital.
Whether a business is seeking working capital, financing for equipment, or funding to pursue new opportunities, LPP reflects the STO’s continued commitment to helping California’s small businesses thrive through innovative partnerships and expanded access to capital.
Small businesses can learn more about LPP and participating lenders at ccalpp.com, and are encouraged to assess their loan readiness through no-cost consulting offered on the California Office of Small Business Advocate SCALE website. Depository institutions headquartered in California can learn more by contacting the program administrator at connect@teamcca.com.
