About this programme
The Capital Access Program (CAP) is a credit enhancement used statewide by New Hampshire banks, run by the New Hampshire Business Finance Authority (BFA). It gives lenders a government-backed cushion so they can extend financing to small businesses they might otherwise turn down.
CAP works through a loan loss reserve rather than a direct state guarantee payment to the borrower. When a lender enrolls a loan, both the lender and BFA contribute to a reserve fund that the lender can draw on if the loan later goes bad.
How it works
CAP provides a 100% guarantee on term loans and lines of credit up to $500,000, with a maximum CAP enrollment of $200,000 per borrower.
Partial enrollment is allowed. For example, a lender can enroll $50,000 of coverage against a $100,000 loan.
At closing, the lender contributes 3% to 4% of the loan balance into the loan loss reserve fund, a cost that is charged to the borrower. BFA then matches that contribution at 2.5 times the lender's amount and deposits the combined total into the reserve.
There are no application fees charged by BFA and no ongoing annual fees beyond the enrollment contribution.
A line of credit enrolled in CAP must reach a zero balance for 30 days each year.
If a loan defaults, the lender exhausts its normal collection efforts, charges off the balance, and submits a claim form with the loan history; BFA reimburses the lender from the reserve fund after approving the claim. Lenders submit quarterly reports on CAP-enrolled loan balances and delinquency.
Who can apply
The business must have annual revenues under $5 million, and total CAP enrollment on the loan cannot exceed $500,000.
New businesses must contribute a minimum of 20% cash equity, which cannot be borrowed funds.
Nonprofits are eligible if they meet the other requirements. Real estate financed under CAP must be owner-occupied, though partial owner-occupancy may qualify.
Excluded are businesses engaged in activity illegal under federal or state law, commodity or financial instrument trading, pyramid sales, and primary lending activities.
Refinancing existing debt with the same lender is not allowed unless the loan is already CAP-enrolled; refinancing another lender's debt is permitted.
How to apply
- Businesses do not apply to BFA directly for CAP; a participating bank or credit union enrolls the loan on the borrower's behalf.
- The lender submits a CAP enrollment form to BFA, online, by email, or as a hard copy.
- For loans over $50,000, the lender includes a copy of its credit write-up with the enrollment form.
- BFA reviews and approves the enrollment, typically within about 24 hours.
Documents you’ll typically need
- New CAP Loan enrollment form (fillable PDF)
- Existing CAP Loan Refinance form (fillable PDF), where applicable
- CAP Waiver Form, where applicable
- Credit write-up copy, for loans over $50,000
Frequently asked
How is a CAP loan different from a normal small business loan?
The lender and BFA both contribute to a loan loss reserve fund when the loan is enrolled, giving the lender a cushion that lets it approve loans it might otherwise decline.
How fast is CAP enrollment approved?
Typically about 24 hours after the lender submits the enrollment form.
Does the borrower apply to BFA directly?
No. The participating bank or credit union enrolls the loan; the borrower applies through its lender as normal.
Can I use CAP to refinance an existing loan?
You cannot refinance existing debt with the same lender unless it is already CAP-enrolled, but refinancing another lender's debt is allowed.
What happens if the loan defaults?
The lender exhausts its collection efforts, charges off the balance, and files a claim with the loan history; BFA reimburses the lender from the reserve fund once the claim is approved.
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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.