SACRAMENTO, Calif., July 15, 2025 /3BL/ - Small businesses who are working to diversify their revenues through government contracts now have an alternative financing option to assist with market entry and working capital. Recognizing the gap in affordable lending for small businesses who often rely on costly lines of credit and may fall prey to predatory lending, California Capital Financial Development Corporation (FDC), with philanthropic support from Wells Fargo, has introduced the California Capital Flex Loan Fund. The official launch of the fund will take place at the Small Business Capital Connection, a networking event connecting business owners with lenders and state agencies. Capital Connection is free to attend and will take place on June 26, 2025 from 9 a.m. from 11:30 a.m. at the California Department of General Services offices located at The Department of General Services Headquarters, 707 3rd Street, West Sacramento, 95605.
Wells Fargo is providing a $500,000 grant for the program, which will empower the state’s small businesses to participate in regional economic development initiatives, supplier opportunities, and government contracts.
“One of the fastest pathways for small businesses to grow and help create local jobs is to obtain a contract,” said 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 FDC is a Community Development Financial Institution (CDFI) that has been dedicated to helping small businesses start and grow since 1982, providing access to affordable capital and business development services that build the capacity of entrepreneurs and business owners. This fund is not designed for large and established contractors — Flex Fund Loans provide smaller amounts of capital that are ideal for early-stage contractors or very small businesses.
Through the fund, California Capital will connect contract-ready businesses with loans of $5,000 to $150,000 that can be used for working capital, including contract performance costs, bonding fees, or other expenses. With no-interest payments for up to 12 months, and no penalties for early repayment, Flex Fund Loans provide critical gap financing. This is fast but patient capital for critical business needs.
“Helping entrepreneurs access capital to sustain their businesses has been our guiding mission since 1982,” explains 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.”
For small businesses who do business with large public and private agencies through contracts, immediate-term funding can be a challenge. Contractors must often complete work, invoice, and may wait up to 90 days or more for payment to arrive. Loans through the California Capital Flex Loan Fund will fill that gap in financing, particularly for businesses who are ready to expand and in opening doors for businesses who are ready to perform on contracts but need financial stability to do so.
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California Capital Financial Development Corporation is a CDFI in Sacramento, California. Established in 1982, California Capital provides capacity-building and access to capital programs for entrepreneurs and small businesses in Northern California, with a mission of creating wealth and economic security in historically underinvested communities.
California Capital operates programs designated to provide a continuum of services to help businesses at every stage of development. CACAPITAL.ORG.