Fund your business in California

When your own money isn’t enough, California’s programs work like the federal ones: a lender makes the loan, and the state makes that lender more willing to say yes.

What’s different in California

• The main state programs back lenders. IBank’s Small Business Loan Guarantee program and the State Treasurer’s California Capital Access Program (CalCAP) reduce a lender’s risk. You still apply with the lender.
• There’s a disaster version. After a declared disaster, such as a wildfire, IBank can guarantee up to 95% of a lender’s loan, up to $1,000,000.
• Check before counting on a grant. CalOSBA lists no active direct-to-business grant programs.

Do this

1. Write down what you need and what it’s for. Equipment, inventory and rent are different asks, and programs are sorted by use.
2. Talk to a free advisor first. California’s five Small Business Development Center networks advise at no cost, including on loan applications. Find yours on CalOSBA’s centers page.
3. Understand who lends. SBA loans come from participating lenders, not the SBA. The SBA loans guide explains who makes each kind.
4. Ask your lender about California guarantees. Lenders can pair a loan with IBank’s Small Business Loan Guarantee program or the Treasurer’s CalCAP. Ask by name; not every lender participates.
5. Hit by a disaster? Ask a participating lender about the disaster relief guarantee. Your Small Business Development Center can help with the application.
6. Find your SBA district office for questions about SBA loans. California has six: Fresno, Los Angeles, Orange County / Inland Empire, Sacramento, San Diego and San Francisco. The SBA’s list shows which counties each serves.

What you get back

A loan offer from a lender, with rate, term and collateral. Any state guarantee is between the lender and the state; your agreement is with the lender.