The CalCAP programs incentivize participating financial institutions (PFIs) to make loans for a wide array of small business borrower (SBB) financing needs, as well as very specific small business capital needs. The original California Capital Access Program, now known as CalCAP for Small Business, began in 1994. Currently there are five programs active under the CalCAP umbrella, two of which are part of SSBCI 2.0. The CalCAP programs use two different mechanisms, loan loss reserve and collateral support, to help build a safety net for PFIs when they do the important work of making capital available to SBBs.
The Legislature designed Cal IIP to provide grants enhancing the capacity and ability of community development financial institutions (CDFIs) to provide programs including technical assistance and access to capital to economically disadvantaged communities throughout California.
CDFIs can use the grants to fund services and operations that contribute to the CDFI’s overall community development mission. CDFIs can also use the grants to supplement their net assets and increase their capacity to attract additional funding.
The initial legislation enacted in 2000, Senate Bill 1986 (Chapter 915, Statutes of 2000), authorized the CPCFA to administer the CALReUSE Assessment Program to provide forgivable loans to finance the cost of brownfield site assessments, technical assistance, and other specified activities to assist in the reuse and redevelopment of underutilized properties with real or perceived contamination.
In response to the demand for the CALReUSE Assessment Program, the legislature directed bond proceeds from Proposition 1C, the Housing and Energy Shelter Trust Fund Act of 2006 approved by the voters at the November 7, 2006, election, be used for brownfield cleanup projects that promote infill residential and mixed-use development. Through an interagency agreement with the Department of Housing and Community Development (HCD), CPCFA used the funds to expand the scope of CALReUSE to include the CALReUSE Remediation Program, which administered grants and/or loans for the financing of brownfield remediation.
Projects financed by CALReUSE are located throughout California, from Humboldt to San Diego counties. CPCFA worked directly with each awardee through assessment, remediation, and as-needed monitoring, and consulted with the California Department of Toxic Substances Control (DTSC) for technical assistance through an interagency agreement.