The Time Deposit Program was created in 1945 by the State Bank Deposit Law of California. The program allows the State Treasurer to place deposits with eligible California financial institutions. The goal of the Time Deposit Program is to stimulate local economies by supporting financial institutions that serve the interest of their communities throughout the state. All time deposits are fully collateralized.

The California State Treasurer’s Office and a leading fintech Community Development Financial Institution (CDFI), have created this program to stimulate lending to small businesses owned by Socially and Economically Disadvantaged Individuals (SEDI) across California.  This program leverages the STO’s established Time Deposit Program. 

Through this program, deposits will be offered to banks with a presence in California. They do not need to be headquartered in California.  The banks will then invest a percentage of the deposited funds in participating CDFIs which specialize in providing capital and other financial services to underserved communities. 

Financial institutions headquartered in California and authorized to accept deposits in the State of California. Eligible institutions include federally-insured commercial banks, savings banks, and credit unions. For the Small Business Lending Time Deposit Program, financial institutions with a presence in California may participate.

Currently, Financial Institutions can obtain deposits up to 80% of their total equity with a maximum of $300 million. The maximum amount will be increased to $400 million for those institutions that will lend this additional money to businesses and individuals adversely affected by the 2025 Southern California wildfires. The $400 million limit will be on a first come first served basis until the time deposit program reaches its overall program maximum amount. The $400 million limit will be reduced back to $300 million by July 2028.

The State Treasurer places a high priority on community investment. Every effort is made to assure access to the Time Deposit Program for institutions that rely more on public and private deposits to lend and invest within their neighborhoods. By accessing funds through the Time Deposit Program, financial institutions can re-invest in the California communities they serve.