California small business grants, loans and training funds (2026)

Every CalOSBA grant program on the list is closed

Many websites still list California’s pandemic-era grants as if you could apply. CalOSBA’s own table shows all seven as closed ⁠¹:

The California Dream Fund was the closest thing to a state startup grant, and it is closed ⁠¹. The California Competes Grant Program for large job-creating projects is also gone. The Legislature funded it with $120 million a year from 2021 to 2023, then left it out of the 2024 and 2025 budgets because of projected deficits ⁠¹².

IBank loan guarantees through seven Financial Development Corporations

The California Infrastructure and Economic Development Bank (IBank) runs the California Small Business Loan Guarantee Program, and it is the main way most owners will feel California’s SSBCI money. Treasury lists it as IBank’s SSBCI loan guarantee program ⁠³. The state does not lend to you. It promises your lender that it will repay part of the loan if you default, so a bank or CDFI can approve a loan it would otherwise turn down. You repay the full loan.

The disaster guarantee steps down to 90% or 85% as the interest rate rises above the Wall Street Journal prime rate plus 1% ⁠⁴. Allowed uses include start-up costs, working capital, equipment, inventory, franchise fees, building purchase and tenant improvements, so a new business can use it ⁠⁴.

IBank does not take applications. Its seven Financial Development Corporations (FDCs) process the guarantees and help borrowers, and they work with a lender list that IBank says is current as of October 2026 ⁠⁵:

• California Capital Financial Development Corporation (Sacramento, Stockton, Yuba City), 916-442-1729
• California Coastal Rural Development Corporation (Salinas, Santa Maria, Santa Barbara), 831-424-1099
• California Southern Small Business Development Corporation (San Diego), 619-232-7771
• Small Business Development Corporation of Orange County (Santa Ana, Redlands), 714-571-1900
• Nor-Cal Financial Development Corporation (Oakland), 510-698-2080
• PCR Business Finance (Los Angeles, Compton), 213-739-2999
• Valley Small Business Development Corporation (Fresno, Hanford), 559-438-9680

If your bank is not on the list, IBank says lenders can enroll at any time, so ask yours to sign up ⁠⁵.

CalCAP and the Treasurer’s SSBCI programs

The California Pollution Control Financing Authority, part of the State Treasurer’s Office, runs the other half of the state’s SSBCI money. Treasury’s August 2026 list shows three programs there: the California Capital Access Program (CalCAP), a Collateral Support Program and a Loan Participation Program ⁠³.

CalCAP works like insurance the lender buys. You and the lender each pay a fee into a loss reserve account held for that lender. On SSBCI-funded loans the state adds a matching contribution equal to the combined fees, and one borrower can borrow no more than $5 million with SSBCI support ⁠⁷. You must certify that the loan is for a business purpose and will not pay off delinquent taxes without a payment plan, buy out an owner or repay owners’ prior investment ⁠⁷. Treasury’s report gives a real example: Women’s Economic Ventures, a Santa Barbara CDFI, enrolled a $45,000 loan to Bossie’s Kitchen in CalCAP, which kept the 12-employee restaurant open ⁠².

IBank’s venture capital money needs a lead investor first

California set aside $250 million of its SSBCI allocation for venture capital. IBank invests $200 million in venture funds and puts the rest directly into companies ⁠⁶. A startup cannot apply for a stand-alone investment. IBank co-invests only in companies that already have a lead investor in the current round, and the funds it backs must target at least $50 million ⁠⁶. Cambridge Associates and Recast Capital screen the deals. Treasury lists three IBank equity programs: the Inclusive California Initiative, the Emerging California Initiative and the California Co-investment Initiative ⁠³. Equity is not a grant: the state takes an ownership stake.

Employment Training Panel: training money paid after the training

The Employment Training Panel (ETP) is the state’s real grant for employers, but it only reimburses training. It pays a fixed rate for each trainee hour after training is done. For FY 2026-27 the Panel set aside $5,713,571 for small business contracts, out of $114,271,417 in total. A single employer contract, small business included, is capped at $650,000 ⁠⁸.

The small business rate is $28 per training hour per trainee. It applies to firms with 100 or fewer full-time employees in California and no more than 250 worldwide. The standard retraining rate for larger firms is $24 ⁠⁹. Under that rate, 10 employees taking 40 hours each would bring in up to $11,200. Firms too small to run their own contract can join a Multiple Employer Contract through a chamber, trade association or college ⁠⁹. The Panel bars some businesses from core funds in FY 2026-27, including multi-level marketing, gambling and partners in law, accounting and engineering firms ⁠⁸.

Export vouchers, CalSEED and the California Competes Tax Credit

STEP Export Voucher (grant, reimbursement). GO-Biz’s FY26 STEP period runs July 1, 2026 to September 29, 2027. The voucher repays up to 75% of pre-approved costs, with a $500 minimum and a $10,000 cap per company each federal fiscal year ⁠¹⁰. The caps within that limit are $10,000 for an international trade show or trade mission, $7,500 for a domestic trade show and $5,000 for website globalization or marketing materials ⁠¹⁰. To qualify, you must have been in business at least one year, have significant operations in California and sell a product or service that is export-ready and at least 51% U.S. content. Start-ups and new product development are excluded ⁠¹⁰. Applications must be filed before the activity, and the guidelines warn that money may run out before the period ends ⁠¹⁰.

CalSEED (grant, competitive). The California Energy Commission funds CalSEED for early clean energy technology. It offers a $200,000 Concept Award and a $500,000 Prototype Award. In April 2026 the Commission approved 11 Prototype Awards from the summer 2025 competition ⁠¹³. There is no open call as of October 2026.

California Competes Tax Credit (tax credit). GO-Biz has $819,843,124 in credits for FY 2026-27. The windows are July 20 to August 10, 2026 ($350 million, closed), January 4 to 25, 2027 ($250 million) and March 1 to 15, 2027 ($219.8 million plus leftovers) ⁠¹¹. It is open to businesses of all sizes with no fee, and awards depend on new jobs, wages and investment ⁠¹¹. It lowers your state income tax. It is not cash.

California has no state SBIR/STTR matching grant on CalOSBA’s list. CalOSBA points technology firms to the federal SBIR/STTR programs ⁠¹.

Los Angeles County’s storefront grants show what local programs look like

Real cash grants for opening a business mostly come from cities and counties, in small and short rounds. Los Angeles County’s Department of Economic Opportunity ran Small Business Mobility Fund Launch Grants with ICON Community Development Corporation. They paid $10,000 for a retail storefront or $5,000 for an office or warehouse. The money covered tenant improvements, facades, signs and permits for businesses in unincorporated parts of the county only ⁠¹⁴. Round 1 paid $105,000 to 12 businesses, and the extended deadline for later cycles was June 1, 2026 ⁠¹⁴. Ask your SBDC adviser or city economic development office about similar local rounds.

Getting financed in California, step by step

1. Start at a free small business center

   Use CalOSBA’s finder to pick an SBDC or other SCALE center and submit its interest form. Advising is free, and the adviser can match you with a lender ⁠¹⁵. Bring a business plan, two years of tax returns or projections, and the amount you need.

2. Ask about a state guarantee before a bank says no

   Call the nearest FDC from IBank’s list, or ask your bank whether it enrolls loans in IBank’s guarantee or CalCAP ⁠⁵. Budget for the 2.5% guarantee fee plus $250 on an IBank guarantee ⁠⁴.

3. Expect a normal loan review

   The lender sets the rate and terms and makes the credit decision. The FDC adds the guarantee once the lender approves ⁠⁵. If one lender declines, try another participating lender or a CDFI.

4. Apply to ETP before you train

   Register your company in Cal-E-Force and tell ETP your employee count, the training hours and courses, and the wages your trainees will earn. ETP reimburses $28 per hour only after training is finished ⁠⁹.

5. Line up export costs for STEP

   Confirm your one year in business and your U.S. content share. Then apply through the STEP portal before the trade show or service you want reimbursed, since activities already done cannot be covered ⁠¹⁰.

6. Raise a lead investor before you approach IBank for equity

   Send the Direct Investment Application only once a lead investor has committed to your round ⁠⁶.

7. Reapply or switch programs if you are turned down

   STEP and CalSEED are competitive, so ask GO-Biz ([email protected]) or CalSEED for feedback and apply again in the next round ⁠¹⁰⁠¹³. California Competes applicants can apply again in a later window ⁠¹¹.

For other California help, see the California overview, or compare states on the small business grants hub.