Working Capital
Fund payroll, inventory, receivables, and day-to-day operating needs.
California state-backed financing
California State Loan Guarantee Program
The State of California guarantees up to 80% of a bank loan, helping California small businesses get approved for working capital, lines of credit, equipment, and expansion when a bank can't say yes on its own.
Program overview
A state guarantee that helps banks approve California businesses
California's Small Business Loan Guarantee Program is run by the California Infrastructure and Economic Development Bank (IBank) and delivered through a network of nonprofit Financial Development Corporations (FDCs). When a business is creditworthy but falls short of a bank's standard requirements — limited collateral, a shorter operating history, or a recent setback — the state guarantees up to 80% of the loan, reducing the bank's risk so it can approve the request.
We structure the request, prepare the credit package, and work with participating lenders and the FDC to put the guarantee in place. It's a strong option for needs the SBA doesn't fit well, including revolving lines of credit and shorter-term working capital.
What the Guarantee Can Support
Lines of Credit
Revolving credit lines a bank might not approve on its own — backed by the state guarantee.
Equipment & Machinery
Purchase or upgrade equipment, vehicles, and machinery.
Expansion & Construction
Expand, renovate, or build out a new location.
Startups & Younger Businesses
Help for newer businesses that don't yet meet a bank's standard credit box.
Agriculture, Export & Disaster Recovery
Financing for farms and agribusiness, exporters, and businesses rebuilding after a disaster.
State Guarantee vs. SBA 7(a)
| California State Guarantee | SBA 7(a) | |
|---|---|---|
| Who backs the loan | State of California (IBank) | U.S. Small Business Administration |
| Guarantee | Up to 80% | Up to 85% (75% over $150K) |
| Lines of credit | Yes — a core use | Limited options |
| Guarantee term | Up to 7 years | Up to 10 years (25 with real estate) |
| Where | California businesses only | Nationwide |
| Best for | Working capital, credit lines, and businesses just outside a bank's credit box | Acquisitions, real estate, and larger long-term financing |
Not sure which fits? Many businesses qualify for both — we'll compare them for your situation.
Our role
Putting the state guarantee to work for your business.
Eligibility review
We confirm whether the state guarantee, SBA, or a conventional loan is the best path for your request.
Credit package
We prepare the financials and narrative that both the lender and the FDC need to approve the guarantee.
Lender and FDC coordination
We work with participating lenders and the Financial Development Corporation serving your area.
Through closing
We stay engaged through approval, guarantee issuance, and closing.