Capital Access Program

Next Section Continue


What is the Capital Access Program?
New York State's Capital Access Program (CAP) is a $7.9 million program that provides matching funds to financial institutions for loan loss reserves as an incentive to increase small business lending.

Next Section Continue


New York State’s CAP is a loan loss portfolio insurance program designed to increase financing opportunities for New York State’s small businesses. Through CAP, Empire State Development (ESD) provides funding to a dedicated loan loss reserve account which can be utilized if a loan defaults. The reserve account begins with the borrower and lender making a shared contribution of 3 to 7 percent of the loan amount, which is then matched by Empire State Development.  The reserve account balance increases with each loan enrolled and can provide 100 percent reimbursement to a lender for any enrolled loan that defaults.

Benefits of CAP participation:

  • Expands the small to middle market business customer base.
  • Limits exposure to losses through a reserve fund.
  • Enhances Community Reinvestment Act (CRA) efforts.
  • All loan decisions are in the hands of the Lender, without any approval required by ESD or any other entity
  • Provides credit enhancement to all types of loans
Next Section Continue


Qualified lenders include any bank, trust company, savings bank, savings and loan association or cooperative bank chartered by the State or any national banking association, federal savings and loan association or federal savings bank or any community based lending organization, provided, however, that such entity has its principal office located in the State.

A community based lending organization includes community development financial institutions, small business lending consortia, certified development companies, United States Small Business Administration loan providers, and community development credit unions provided however, that such entity has an office for the transaction of business located in the State.

A community development financial institution is further defined as one that meets the following criteria:

(i) has a primary mission of promoting community development;
(ii) serves an investment area or targeted population;
(iii) provides development services in conjunction with equity investments or loans, directly or through a subsidiary or affiliate;
(iv) maintains, through representation on its governing board or otherwise, accountability to residents of its investment area or targeted population; and
(v) is not an agency or instrumentality of the United States, or of any State or political subdivision of a State.

Participating Lenders
Financial institutions must enter into a Capital Access Program Lender Agreement with Empire State Development before enrolling loans. For more information on how to become a participating lender, please click here.

Small Businesses
If you are a small business looking for a loan, there are lenders throughout the state who may be able to help you. Visit our Small Business Alternative Lenders Directory

Next Section Continue

How to Apply

Contact Information

For Capital Access Program inquiries, including information on how to become a participating lender, please contact [email protected].