California Capital Financial Development Corporation was recently announced as a recipient of a $100,000 award from the National Community Reinvestment Coalition (NCRC) as part of the 2024 Field Empowerment Fund (FEF). The Field Empowerment Fund (FEF) empowers NCRC network members to level up established service lines through grants that fund expansions to existing projects. California Capital will leverage the funding to bolster equity practices in loan underwriting.
As a member of the California Small Business Coalition for Racial Justice, California Capital FDC adopted a Racial Equity Lens (REL) loan underwriting framework in 2022. The REL framework was developed by four Community Development Financial Institutions (CDFIs) and the coalition as an experiment in reframing underwriting through an asset-based approach that would lead to increased capital for communities that do not fit traditional borrowing criteria. As part of this project, California Capital created a risk matrix to track and expand credit evaluations.
In 2023 California Capital developed its REL criteria using the 4 C’s of credit (Commitment, Character, Conditions, and Capacity), giving extra consideration to Commitment and Character in the review of loan applications. This approach codifies a holistic review of loan applications, ensuring that borrowers are evaluated on attributes beyond finances and increasing the likelihood that businesses from historically under-banked communities can access financing.
In 2024, with the help of funding from the NCRC Fellowship for Economic Development, California Capital conducted research into ways to improve our REL. In 2025 and into 2026, with additional funding received through the Field Empowerment Fund (FEF), the organization plans to implement recommendations from the 2024 research. This continuous improvement is critical to ensuring that California Capital’s lending programs effectively serve all community members.
California Capital Financial Development Corporation’s (FDC) mission is to provide capital and business development services to increase economic opportunities for underserved and underbanked communities and people. California Capital FDC is a CDFI mission-based lender providing microloans for start-ups and bridge financing to loans and loan guarantees for expansion, working capital, and equipment.
