Main Street Monday: How a CDFI is Using Philanthropic Capital from Wells Fargo to Help Small Businesses Break Into Government Contracting
For small businesses looking to grow by entering the government contracting space, accessing affordable working capital can be the difference between success and stagnation. Recognizing this gap, California Capital Financial Development Corporation —a mission-driven CDFI—has launched a targeted new loan fund designed to help small businesses get their foot in the door with public sector buyers. Backed by a $500,000 philanthropic grant from Wells Fargo, the California Capital Flex Loan Fund delivers fast, flexible financing for contractors pursuing new opportunities.
Filling the Gap Between Invoicing and Payment
Contracting with government agencies is a proven way for small businesses to scale—but it comes with cash flow challenges. Contractors must often front labor and materials, submit an invoice, and then wait 30, 60, even 90 days for payment. For early-stage firms, that delay can be debilitating.
California Capital’s new Flex Loan Fund is built to solve that problem. With loan amounts ranging from $5,000 to $150,000, the fund offers no-interest payments for up to 12 months, no penalties for early payoff, and can be used for working capital needs like bonding, labor, or supplies. It’s an ideal product for “contract-ready” firms that need patient capital to perform and grow.
“This is fast but patient capital,” says Deborah Lowe Muramoto, President and CEO of California Capital. “With this new Flex Loan Fund, we will be able to reach more businesses who are uplifting their communities, creating jobs, and driving California’s economic growth.”
More Than Just Capital—It’s a Pathway to Inclusion
The Flex Loan Fund officially launched at the Small Business Capital Connection, a public networking event that brought together small businesses, lenders, and state agencies at the California Department of General Services headquarters in West Sacramento. The event served as a real-time matchmaking opportunity for small businesses seeking financing and access to procurement resources.
Funded in part by Wells Fargo’s Community Impact team, the initiative underscores the role of CDFIs in bridging access to capital where traditional banks often hesitate.
“One of the fastest pathways for small businesses to grow and help create local jobs is to obtain a contract,” says Kären Woodruff, Senior Vice President of Philanthropy and Community Impact at Wells Fargo. “We’re proud to work with California Capital to help them offer small business owners a flexible avenue to capital and coaching during the contract and procurement process.”
California Capital has served entrepreneurs since 1982, focusing on underserved markets including women-, minority-, and veteran-owned businesses. As a certified CDFI, the organization brings deep experience in delivering mission-driven finance solutions.
Construction Loan Closing Documentation: Meeting SOP Requirements with Perfection — Webinar 7/23
Construction lending under the SBA 7(a) and 504 programs can be a profitable niche — when done right. But with it comes a unique set of documentation and compliance challenges that can derail a project if not properly managed.
Join construction risk management expert Kyle Gustafson as he walks through the key documents, timelines, and risk factors that lenders must manage to ensure projects stay on track and SBA guarantees are protected.
Mastering SBA 7(a) Delinquency: Insider Tips for Servicing Loans Past 31 Days — Webinar 7/29
One of the reasons SBA raised 7(a) guaranty fees in spring is that the agency is seeing a spike in delinquencies and charge-offs, which lead to guaranty purchases — and greater cash outflows from the US Treasury. Faced with a deterioration in your SBA 7(a) loan portfolio, now is the time to be proactive and ensure you are taking the prudent lending steps demanded by SBA in servicing delinquent loans.
Coleman’s award-winning SBA Servicing and Liquidation expert webinar instructor, Lance Sexton, will lead a discussion of successful insider tips he has accumulated over the years to manage an SBA loan that has passed 31 days delinquent.
Avoid Unforced Errors: Top 20 Reasons SBA Denies or Repairs the 7(a) Guaranty — 8/6 |
Avoiding SBA guaranty denials and repairs starts with knowing where things go wrong. This webinar dives into the top 20 reasons SBA 7(a) guarantees are denied or repaired—from collateralization errors and lien issues to improper use of proceeds and documentation gaps. You’ll learn how to spot and prevent these common mistakes before they impact your bottom line. Get practical, real-world strategies to protect your SBA portfolio, improve your risk review processes, and prepare airtight Universal Purchase Packages. Whether you’re underwriting, closing, servicing, or handling liquidation, this session will give you the tools to strengthen compliance, avoid costly missteps, and confidently navigate SBA requirements. |
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