About this programme
The Collateral Support Program (CSP 2.0) helps small Idaho businesses get financing when they don't have enough collateral to qualify on their own. The Idaho Housing and Finance Association (IHFA) administers it statewide, in a partnership between the U.S. Department of the Treasury, the Idaho Division of Financial Management, IHFA, and the Idaho Bankers Association.
The program works by placing pledged cash deposits with lending institutions to strengthen the collateral position of qualified small-business borrowers who could not otherwise get financing on acceptable terms. Treasury has allocated a total of $65,677,548 to Idaho for the program, which the state has contracted IHFA to administer.
For more than a decade, the program has backed more than $545 million in private loans and helped create or retain 6,500 jobs since 2011. One of the primary Treasury requirements is that Idaho leverage the aggregate CSP funding with private lending by a factor of ten over the program period.
How it works
IHFA pledges a cash deposit with the borrower's participating lending institution, established on an individual loan basis. If the borrower defaults, the deposit is available to cover the loss after the lender has foreclosed on all borrower collateral and security; otherwise it is returned to IHFA at loan maturity or repayment and recycled to support another qualified borrower.
Support amounts depend on loan maturity: Category 1 loans (one year or less) can receive collateral support of up to 25% of the lender's loan amount or $1,500,000, whichever is less. Category 2 loans (one to five years) can receive up to 20% of the loan amount or $1,000,000, whichever is less. Category 3 loans (more than five years) can receive up to 20% of the loan amount or $750,000, whichever is less. Collateral deposit accounts are funded at 100% of the collateral support amount, with no staged funding.
The participating lender is responsible for originating, underwriting, and servicing the loan; the CSP is not intended to make up for deficient credit criteria such as cash flow. Loans with a principal amount under $100,000 cannot carry a prepayment penalty, and upfront fees charged to the small business (excluding program fees) cannot exceed 3% for loans over $25,000 or $750 for loans under $25,000.
Who can apply
The borrower must be registered and doing business in Idaho, as a for-profit corporation, partnership, LLC, LLP, joint venture, sole proprietorship, cooperative, or other entity authorized to do business in the state.
The business must employ 100 or fewer employees, and must otherwise meet the lender's normal credit underwriting criteria except for the collateral shortfall itself.
The borrower cannot be an executive officer, director, or principal shareholder of the participating lender (or a related party), and principals cannot have been convicted of a sex offense against a minor.
SEDI (Socially and Economically Disadvantaged Individuals) owned businesses are encouraged to apply.
Eligible loan purposes include start-up costs, working capital, business acquisitions and expansions, franchise financing, equipment purchases, ESOP financing, inventory financing, owner-occupied commercial real estate acquisition, construction, and certain debt refinancing. SBA 7(a) loans and any government-guaranteed loans are ineligible; SBA 504 loans are eligible with conditions. Maximum loan amount is $5 million.
Prohibited loan purposes include a change of ownership, owner reimbursement or equity, paying delinquent taxes, passive or investment real estate, speculative activities, lending, pyramid schemes, illegal uses, gambling, and loans to charities and nonprofits.
How to apply
- Work with a participating lender on the CSP Participating Lenders list to discuss your loan; the lender executes a Lender Participation Agreement with IHFA if it has not already done so.
- The lender submits a Collateral Support Application to IHFA and may also obtain the Certificate and Agreement of Borrower from you at this stage.
- IHFA typically responds within 3 to 5 business days with an initial email, followed by formal approval; once accepted, the funding reservation for the collateral support deposit is valid for 60 calendar days.
- The lender underwrites the loan under its own normal criteria and assumes full responsibility for credit decisions and servicing. Before closing, IHFA opens a pledged collateral deposit account with the lender.
- At loan closing, the lender executes a Collateral Deposit Agreement, certifying that it followed prudent underwriting and that the collateral support deposit was instrumental in making the loan; IHFA then funds the account.
Documents you’ll typically need
- CSP Application
- CSP Application Instructions
- CSP Participation Guide
- Certificate of Borrower 2.0
- Lender Participation Agreement (lender-executed)
- Collateral Deposit Agreement (executed at loan closing)
Frequently asked
How does the Collateral Support Program help a small business?
It places a pledged cash deposit with your lender to cover a collateral shortfall, so a business that would otherwise be turned down for lack of collateral (but meets the lender's other credit criteria) can get financing.
How much collateral support can a loan get?
It depends on the loan's maturity: up to 25% of the loan amount or $1,500,000 (whichever is less) for loans of one year or less, up to 20% or $1,000,000 for loans of one to five years, and up to 20% or $750,000 for loans of more than five years.
Do I apply to IHFA directly?
No. You apply through a participating lender, who submits the Collateral Support Application to IHFA on your behalf.
What size business can use CSP?
The business must employ 100 or fewer employees and be registered and doing business in Idaho.
What can't the loan be used for?
Prohibited uses include a change of ownership, owner reimbursement or equity, paying delinquent taxes, passive or speculative real estate investment, lending, pyramid schemes, illegal uses, gambling, and loans to charities or nonprofits.
What happens to the collateral deposit if I repay the loan on schedule?
It is returned to IHFA at repayment or maturity and recycled to support another qualified small-business borrower.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.