The Florida Department of Economic Opportunity is administering the Florida Capital Access Program (CAP). CAP is a loan portfolio insurance program enabling lenders to make loans to small businesses that are creditworthy, but are not getting the loans they need to expand and create jobs. Small businesses benefit from CAP by securing capital through lenders. Small business are encouraged to contact participating lenders listed below to learn more about lending options through CAP.
Loan Loss Reserve Account Fund
Lenders that participate in this program are allocated matching CAP funds to build a loan loss reserve account (account). The state of Florida will use CAP funds to match a combined fee (premium) paid by the lender and the borrower ranging between 2 percent to 7 percent of an enrolled CAP loan as determined by the lender. As the lender's total loan loss reserve account grows, so does its ability to cover losses on any enrolled CAP loan.
Example Loan Loss Reserve Account
The participating lender can build its loan loss reserve under the CAP using a variety of models. For example, 10 enrolled CAP loans that are $100,000 each with an 8 percent reserve for each produces $80,000 in cash collateral for the total loan loss reserve account.
Enrolled CAP loan for $100,000
2% Borrower Fee ($2,000) + 2% Lender Fee ($2,000) + 4% State CAP match ($4,000) = 8% Loan loss reserve account contribution ($8,000)
Any federal or state insured bank or credit union, or community development financial institution can become a participating lender. For the purpose of this webpage, the term "lender" will be used to reference, collectively, any federal or state insured bank or credit union or community financial institution, unless specified otherwise.