California Small Business Loan Match makes it easier for entrepreneurs to discover loans from trusted lenders like DreamSpring.
Sacramento, California, and Albuquerque, New Mexico — California Small Business Loan Match, a new lender match tool for business owners to discover vital funding options, is excited to announce it has launched in California. A free and easy-to-use one-stop solution, caloanmatch.org is collaborating with DreamSpring — an award-winning nonprofit Community Development Financial Institution (CDFI) and Small Business Administration (SBA) lender —along with more than 20 lenders across the state that are considered responsible and non-predatory. The goal is to empower entrepreneurs, particularly those who are socially and economically disadvantaged, through responsible lending that is backed by the State of California.
"We are thrilled to launch California Small Business Loan Match and connect California small business owners with pre-vetted lenders and loans they can trust," says IBank Executive Director Scott Wu. "All of these lenders use IBank’s Small Business Loan Guarantee Program, which reduces lenders’ risk in loaning to small businesses that may struggle to access capital. The program has successfully supported more than $2B in loans to small businesses across the state since 2013."
Powered by California’s IBank, a state government agency that manages the Small Business Loan Guarantee Program through their Small Business Finance Center, the new tool features CDFI lenders such as DreamSpring. CDFIs are preferred by the small business community because they help borrowers who don’t meet the more rigid lending criteria of traditional banks — for example, small businesses that have a lower credit score or a defaulted loan. CDFIs also help people in lower-income communities and offer much more flexible and affordable repayment plans.
"Our lenders on California Small Business Loan Match are ideal for business owners who have been turned away from traditional banks or who faced hardships that they’re still recovering from," says Megan Hodapp, IBank’s Small Business Finance Center Manager. "With this tool, we will help small business owners avoid predatory lenders and feel supported throughout the entire process."
As a no-cost, one-stop solution, caloanmatch.org is easy to use and navigate. First, business owners fill out a short pre-application questionnaire that takes minutes to complete. Next, the site will match the owner with lenders that fit their needs, such as DreamSpring. Business owners can view details about each lender and select the one they like best. The lender will reach out within three business days to complete the application process.
“We are excited to partner with California Small Business Loan Match to help entrepreneurs access the capital they need to success,” says Metta Smith, Chief Lending & Client Experience Officer at DreamSpring. “This initiative aligns perfectly with DreamSpring’s mission to support underserved communities by providing personalized funding solutions and dedicated support. Together, we can equip creative and resilient business owners to thrive and drive economic growth in their communities.”
The launch of California Small Business Loan Match is supported by the Initiative for Inclusive Entrepreneurship (IIE) in partnership with Next Street and Community Reinvestment Fund, USA (CRF).
IIE brings together public, private, and philanthropic entities to maximize and build upon the U.S. Department of Treasury’s $10B State Small Business Credit Initiative (SSBCI). By expanding innovative products for small business owners of color, the program aims to break down systemic barriers and ultimately unlock billions of dollars in federal investments aimed at underserved small businesses.
"As part of the Initiative for Inclusive Entrepreneurship (IIE), we identified California as a prime market for this type of innovative loan match solution," says Samantha Berg, Co-CEO at Next Street. "We are proud to support the design and development of a go-to-market solution to support California Small Business Loan Match and look forward to connecting underserved small businesses with the right resources to help them sustain and grow."
California Small Business Loan Match uses CRF Connect technology, a cloud-based solution that seamlessly connects small business owners with mission-aligned organizations like DreamSpring for loans, technical assistance, grants, and other resources.
"In partnership with others, CRF aims to reduce access to capital barriers and streamline the process for entrepreneurs to find funding and other resources," says Patrick Davis, SVP of Platform and Technology Services at CRF. "Integrated with CRF Connect technology, California Small Business Loan Match demonstrates our commitment to collaboration and will be an impactful tool for us to collectively support thousands of entrepreneurs across the state."
California-based small business owners are also invited to register for a number of free educational webinars on loan readiness to prepare themselves for the California Small Business Loan Match pre-application and experience. Register on caloanmatch.org.
Learn more about how to engage with DreamSpring and the CA Small Business Loan Match program, or apply directly with DreamSpring.
Founded in 1994, the California Infrastructure and Economic Development Bank (IBank) is a state government agency that is part of the Governor’s Office of Business and Economic Development. IBank finances public infrastructure and private development that promote a healthy climate for jobs, contribute to a strong economy, and improve the quality of life in California communities.
The Small Business Loan Guarantee Program specializes in bridging the gap between responsible lenders and small businesses. Although IBank does not offer loans directly, they work with nonprofits and small business lenders to offer small business loan guarantees. By guaranteeing loans, IBank gives lenders the confidence they need to issue loans to small businesses that otherwise may struggle to access funding. The program is supported by the federal State Small Business Credit Initiative (SSBCI), which recently allocated California $1.2B to help small businesses seeking loans.
Next Street and CRF are the innovative partners working on behalf of the Initiative for Inclusive Entrepreneurship (IIE). Announced in 2021 by Vice President Kamala Harris, IIE is a national effort to expand access to capital for small businesses owned by people of color. Next Street is a mission-driven, for-profit firm building the connected infrastructure for America’s small businesses who have been systemically held back. CRF powers CRF Connect, the first-ever single online network that helps mission-driven lenders streamline demand and reach small business owners who want to grow their businesses and boost their communities.