Learn details about the State Small Business Credit Initiative (SSBCI), a federal program that provides California $1.2 billion to help small businesses trying to secure financing for their growth, operations, or expansion on this week’s free webinar with SBDC director Kelly Bearden.
Kelly takes an in depth look at SSBCI and provides details on small business qualifications, eligible uses of loans up to $1 million, and where to apply for help.
This marks the 365th episode of the “Webinar Wednesday” business series that provides news and information helpful to employers and business owners.
The CSU Bakersfield SBDC provides free one-on-one help to small business owners. New and existing businesses can go to https://csubsbdc.com/ for more information or to sign up to meet with a business advisor at no cost.
TIMESTAMPS
00:00 Intro
01:17 What’s up today November 19, 2025
04:15 Poll question #1: “What is the biggest challenge your business faces in securing financing?”
06:25 Poll question #2: “What type of capital do you need most at this particular time?”
10:03 Economic Corner
10:19 Economic realities of inflation & danger of recession for small businesses
14:43 Probability of a recession in the next 12 months
19:33 Subscribe to our CSUB SBDC YouTube Channel https://www.youtube.com/@csubsbdc
21:47 Small Business Credit Initiative Overview
Lender Documentation and Location Requirements
22:34 Lenders require current financials, including six months of bank statements and, for existing businesses, a couple of years of tax returns.
24:03 Debt visibility is important, with attention to a business schedule of existing debt and ratios such as debt-to-equity and cash flow coverage.
24:58 Leases are reviewed to ensure the business can stay in its location for the life of the loan; options like longer leases and lease extensions can appease lenders.
Startup Financing Requirements and Guarantees
27:27 Financial projections and business plans are key for expansion funding considerations.
27:34 A broad range of lenders exist for startups, including community banks, credit unions, and CDFIs.
27:54 Lenders typically require two years of forecasted income and expenses and a plan showing how the business will generate revenue and repay the loan.
29:55 Ownership and personal guarantees are scrutinized, with 20% ownership being a common threshold for personal guarantees and financial disclosure.
30:14 When evaluating five or more partners, each owner typically must provide personal financial statements and guarantee the loan.
31:04 Bringing in non-traditional investors or friends and family as owners must stay within thresholds to avoid complicating loan guarantees.
Collateral Support Programs in California
32:17 Collateral is a key hurdle for loans; several programs exist to support collateral or reduce its need.
33:36 CalCap and SSBCI programs provide collateral support and risk mitigation, with lending through partner institutions.
35:13 CalCap offers small business lending guarantees and collateral support, with multiple regional offices and involvement from state entities.
37:32 Lenders typically require collateral on fixed assets, while working capital loans often lack sufficient collateral and rely on other considerations.
Credit, Cash Flow, Collateral Evaluation
39:07 Credit analysis focuses on score, payment history, and cash flow considerations vary by deal.
Free credit report https://www.annualcreditreport.com/index.action
39:48 Global cash flow includes personal income and external sources, sometimes involving a spouse or other business income.
40:24 Collateral discussion covers personal residence, real estate, and use of UCC1 filings to secure business assets; lenders may require collateral if available.
California Capital Access Program Details
45:56 Discussion highlights CalCap (California Capital Access Program) and its loan loss reserve mechanism, including typical 4% contributions and securitized support for lenders.
CalCAP Program https://www.treasurer.ca.gov/cpcfa/calcap/index.asp
46:02 Explanation that CalCap provides collateral support allowing lenders to issue loans with light or missing collateral, and that third-party lenders like credit unions and community lenders participate.
CalCAP for Small Businesses https://www.treasurer.ca.gov/cpcfa/calcap/sb/index.asp
48:14 Examples of CalCap-funded deals across various counties, illustrating micro to larger loans, working capital, and job creation.
50:39 Questions and Answers with Attendees