General Information for CalCAP Zero-Emission Heavy-Duty Programs

• Descriptions |
• Eligibility

CalCAP ZEHDV, CalCAP ZEHDI, and CalCAP ZETBIF Program Descriptions

• CalCAP programs provide risk management tools to participating financial institutions (PFIs) to encourage them to make loans to small businesses, which otherwise may struggle to access capital.
• CalCAP Zero-Emission Heavy-Duty (CalCAP ZEHD) includes three pilot programs which complement each other to support loans to smaller fleets and owner-operators for zero-emission vehicles and infrastructure.
  • CalCAP Zero-Emission Heavy-Duty Vehicles (CalCAP ZEHDV) is a state-wide pilot for zero-emission heavy-duty and medium-duty vehicles.
  • CalCAP Zero-Emission Heavy-Duty Infrastructure is a state-wide pilot for zero-emission heavy-duty and medium-duty infrastructure.
  • CalCAP Zero-Emission Truck, Bus and Infrastructure Financing (CalCAP ZETBIF) is a utility-service-area pilot for zero-emission heavy-duty and medium-duty vehicles and infrastructure.
• Each of these programs provides a risk management tool to a participating financial institution (PFI) after:
  • a small business borrower (SBB) has applied to a PFI;
  • the PFI has underwritten the loan(s) and determined a risk management tool will be useful, and that the loan(s) fit the eligibility criteria for CalCAP ZEHDV and/or CalCAP ZEDHI and/or CalCAP ZETBIF; and
  • the PFI has disbursed the loan(s) to the SBB.
• A contribution for each loan is added to the loan loss reserve account(s) assigned to the PFI for each program after:
  • the loan(s) are disbursed by the PFI;
  • the PFI has applied for enrollment in CalCAP ZEHDV and/or CalCAP ZEDHI and/or CalCAP ZETBIF; and
  • enrollment(s) have been approved.
• Each accumulated loan loss reserve account is available to pay up to 100% of the PFI’s claim for a loan enrolled in the matching program, during the term of enrollment, in the case of default. If no claim for an enrolled loan is made prior to the expiration of enrollment, the contribution remains in the loan loss reserve account (subject to independent contributor requirements).
• Contribution Amounts
  • In these programs, all contributions are made by the programs. Lenders and borrowers do not make a contribution.
    • CalCAP ZEHDV: 25%
    • CalCAP ZEHDI: 25%
    • CalCAP ZETBIF: 25%