Capital access program - cash collateral guarantees for small business loans

In Massachusetts, CAP provides cash collateral guarantees for loans up to $500,000. In Rhode Island, guarantees are available for loans up to $750,000. The average CAP loan size is approximately $100,000, making the program ideal for small business financing needs.

Borrowers pay a minimum enrollment fee of 3% of the loan amount, which is deposited into a loss reserve account. The state matches this contribution with an additional 3% payment, creating a 6% total loss reserve that protects the lender.

Most for-profit businesses operating in Massachusetts or Rhode Island are eligible. The program is designed to help businesses that have viable operations but may not meet all traditional bank underwriting criteria due to limited collateral, short operating history, or other factors.

You apply for financing at any participating bank or lender in Massachusetts or Rhode Island. If your loan needs credit enhancement, the bank enrolls it in CAP. You negotiate all terms—interest rate, repayment schedule, and collateral—directly with your bank. BDC Capital administers the program and provides the matching state contribution.

CAP loans can be used for virtually any business purpose approved by your lender, including working capital, equipment purchases, real estate acquisition, inventory, business expansion, debt refinancing, and more. Specific use restrictions may apply based on state program guidelines.

Unlike SBA loans that require federal government approval and extensive documentation, CAP loans are approved solely by your participating lender using their own underwriting standards and procedures. There are no federal forms, no SBA approval process, and no delays. The cash collateral guarantee stays with your lender, providing simple, efficient credit enhancement.