Capital Infusion Program

The Capital Infusion Program is administered by the California Office of the Small Business Advocate at the Governors Office of Business and Economic Development. The program is designed to strengthen access to capital services for California small businesses and entrepreneurs through the states five Small Business Development Center networks. The program is not a direct grant program for small businesses. Instead, state funding is awarded to eligible SBDC Lead Centers so they can provide business advising and related technical assistance intended to help clients navigate the financing landscape and obtain capital needed to operate or expand their businesses. California budgets $3 million annually for the program, including support for the local cash match funding required by the United States Small Business Administration. Program activities focus on advising and training that contribute to capital acquisition and improved investment or financing readiness. Allowable services can include loan readiness, strategic planning, go to market strategies, Small Business Innovation Research and Small Business Technology Transfer application or proposal support, investor and pitch deck preparation, financial business planning, credit advising, financial education, bootstrapping, commercialization planning, and other advising connected to an overall capital infusion goal. Capital infusion may include SBA and non SBA loans, nontraditional financing such as convertible debt, grants and other non dilutive funding, SBIR and STTR awards, and owner or non owner equity investment. Funds must be used solely for purposes authorized by the program announcement and grant agreement, and costs must satisfy reasonableness, allowability, and allocability requirements. Indirect costs may not be claimed in the proposal budget. Eligibility is narrowly restricted to the five SBDC Networks operating in California. Applications may only be submitted by SBDC Lead Centers, with one consolidated application submitted for each SBDC region. Lead Center applications should incorporate proposed funding for participating subcenters. A Lead Center may subcontract funds to participating subcenters and entities that have formal agreements with the Lead Center to provide advising services. Awards require a one to one match of SBA funds. The cumulative spenddown of the CalOSBA grant and SBA funds must reflect a one to one ratio at the end of the second quarter and fourth quarter. Lead Centers must submit a Certification of SBA Cash Match covering an amount equal to the total regional grant award. Applications must be submitted electronically through the CalOSBA online application portal. Email and facsimile submissions are not accepted, and the portal closes after the deadline without exceptions or extensions for technical difficulties. Required uploads include a Proposal Narrative using the required template, a Budget Justification Spreadsheet covering participating SBDC subcenters, a Certification of SBA Cash Match, an STD.204 Payee Data Record Form, and an STD.21 Drug Free Workplace Certification. The STD.204 and STD.21 forms must be signed within two weeks of each other. The Proposal Narrative must be between three and six pages, use 12 point font, one inch margins, and 1.5 line spacing, and include the questions being answered. The application also requires information about the counties, state Assembly Districts, and state Senate Districts that will be served. The budget must identify participating subcenters and their annual allocations, while proposed metrics must address the required training, counseling, capital, contracting, and related performance measures. CalOSBA evaluates the applicants approach to delivering services and the accompanying milestones and may request clarification regarding technical aspects of a proposal. Narrative points are based on the applicants ability to provide thoughtful and concise responses to the questions as written. CalOSBA may modify budgets when proposed costs are determined to be ineligible, and its determinations concerning eligibility or award amounts are not subject to appeal. Awardees are also subject to programmatic and financial oversight, including review of third party documentation supporting capital infusion milestones. Lead Centers are responsible for accurate performance and financial reporting by their subrecipients, quarterly invoices and metric reports, a mid year narrative report, and an annual narrative report. Performance reporting is required even when an invoice is not submitted for a reporting period. The program announcement was released August 18, 2026, and applications are due by 4:59:59 PM PDT on September 11, 2026. Applicants are encouraged to submit at least two days before the deadline because technical problems do not provide grounds for an extension. Questions may be sent to SBTAEP@gobiz.ca.gov, with the subject CIP 2026/27 RFP Questions, and application assistance may be requested through the same email address using the subject Capital Infusion Program 2026 Application Help. Proposal review is scheduled for September 14 through September 18, 2026, followed by notices of intent to award on September 21, 2026 and grant agreements from September 22 through September 30, 2026. The one year performance period begins October 1, 2026 and ends September 30, 2027. The program is described as an ongoing annual program, so a subsequent annual funding cycle is anticipated.

Use the required templates and answer each narrative question thoughtfully and concisely. Include each question in the narrative and comply with the three to six page formatting requirements. Ensure proposed costs are allowable because CalOSBA may modify budgets containing ineligible costs. Document the required 1:1 SBA cash match. Verify that the STD.204 and STD.21 forms are signed within two weeks of each other. Submit at least two days or 48 hours before the deadline because technical difficulties will not result in an extension.