About this programme
The Small Business Loan Guarantee Program (SBLGP) is run by the Small Business Finance Center (SBFC), a division of the California Infrastructure and Economic Development Bank (IBank). IBank does not lend money to small businesses directly. Instead it guarantees a portion of a loan that a private lender or Community Development Financial Institution (CDFI) has already agreed to make, so the lender takes on less risk when the borrower's credit history or collateral would otherwise make the loan too risky to approve on its own.
The guarantee is delivered through a network of nonprofit Financial Development Corporations (FDCs) — IBank's phrase for the seven regional partners that process loan guarantees on its behalf across California. Between them, IBank says the FDCs carry more than 1,367 years of combined lending experience and over 659 years of experience running the SBFC program specifically.
The program dates back to 1968 and has grown into one of IBank's largest small-business tools: IBank reports $2.9 billion in small business loans supported since FY 2013-14, and $522 million in loans supported in FY 2024-25 alone, with 482,727 jobs created or retained through IBank-supported financing over the program's life.
Eligible uses of the guaranteed financing are broad: start-up costs, working capital, construction, business expansion, inventory, lines of credit, agriculture, export financing, and disaster relief.
How it works
IBank guarantees up to 80% of a small business's outstanding loan balance if the business is unable to repay it. The guarantee protects the lender, not the borrower — it exists so a lender who might otherwise decline the loan has the confidence to approve it.
The maximum guarantee amount on a single loan is $5 million, and the guarantee term runs up to 7 years.
IBank does not set the interest rate or underwrite the loan itself. The lender that originates the loan sets its own interest rate and credit qualifications, and the loan guarantee is layered on top of that private underwriting decision.
Lenders enroll in the program directly with IBank — the program's participating-lender guidance directs new lenders to contact the Small Business Finance Center at SBFC-Programs@IBank.ca.gov to join. Small businesses apply for financing with a participating lender or a Financial Development Corporation serving their area — the loan guarantee itself is arranged between the lender and IBank, not applied for separately by the business.
Who can apply
The business must have between 1 and 750 employees.
It must be registered as one of: a sole proprietorship, limited liability company, cooperative, corporation, partnership, S-corporation, or not-for-profit.
The business's activity must fall within an eligible North American Industry Classification System (NAICS) code.
Citizenship or immigration status is not a factor in eligibility. Trucking owner-operators qualify if they are registered as a legal business entity.
The primary borrower must be a business entity — an individual cannot be the primary borrower, though individuals may act as guarantors or co-borrowers.
Beyond these program-level criteria, credit qualifications are set by the individual lender, not by IBank.
How to apply
- Identify a participating lender or a Financial Development Corporation (FDC) serving your area — IBank publishes the current list on its website.
- Apply for the loan directly with that lender or FDC, the same way you would apply for any business loan (the lender underwrites the loan and sets its interest rate and terms).
- If the lender wants the added security of an IBank guarantee to approve or improve the terms of your loan, the lender — not the business — requests the guarantee from IBank through the FDC relationship.
- For questions on the process, contact the program directly at SBFC-Programs@IBank.ca.gov or 916-341-6600.
Frequently asked
Does IBank lend money directly to my business?
No. IBank does not issue loans or grants directly to small businesses. It guarantees a portion of a loan made by a private lender or Financial Development Corporation, which is what makes the lender more willing to approve the loan.
How much of my loan can IBank guarantee?
IBank can guarantee up to 80% of the outstanding loan balance, up to a maximum guarantee amount of $5 million, for a guarantee term of up to 7 years.
Who is eligible for the Small Business Loan Guarantee Program?
Businesses with 1 to 750 employees, registered as a sole proprietorship, LLC, cooperative, corporation, partnership, S-corporation, or not-for-profit, and operating in an eligible NAICS-coded industry. Citizenship status is not considered.
Who sets my interest rate and loan terms?
The participating lender sets the interest rate and credit qualifications, not IBank. The guarantee only backs a portion of the loan the lender has already agreed to make on its own terms.
What can the loan proceeds be used for?
Start-up costs, working capital, construction, business expansion, inventory, lines of credit, agriculture, export financing, and disaster relief are all listed as eligible uses.
Do I apply to IBank directly for the guarantee?
No. You apply for the loan with a participating lender or Financial Development Corporation. If the lender needs the guarantee to approve or improve your loan, the lender arranges it with IBank — it is not a separate application the business files.
Can an individual be the borrower instead of a business entity?
No. The primary borrower must be a registered business entity. An individual can be a guarantor or co-borrower alongside the business, but not the primary borrower.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.