California

Business Loans in California

California requires non-bank providers to disclose the total cost and an estimated APR on commercial financing of $500,000 or less before you sign. Sagamore, a commercial loan broker, matches established California businesses with lenders for lines of credit, term loans, SBA loans, equipment financing and invoice factoring, so offers can be compared on the same terms.

Written by Jordan Levy, Founder & CEO · Last updated November 4, 2026

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State law

What does California's SB 1235 require lenders to disclose?

SB 1235 and the DFPI's regulations cover term loans, open-end credit, factoring and merchant cash advances offered to California businesses. Banks, credit unions and financing secured by real estate are exempt. A 2023 law, SB 33, made the APR disclosure permanent.

What you should get in writing

The total amount of funds provided
The total dollar cost of the financing
The annual percentage rate, or an estimated APR
The term, or estimated term
The method, frequency and amount of payments, or an average monthly cost when payments aren't monthly
A description of prepayment policies

What else the law does

You sign the disclosure before the deal is finalized.
SB 666, in effect since January 1, 2024, restricts the types of fees providers and brokers can charge small businesses.
SB 362, in effect since January 1, 2026, strengthens the requirements for how pricing is disclosed.

At a glance

Law: SB 1235 (2018), Financial Code ss. 22800 and following; DFPI regulations
In effect: December 9, 2022
Covers: Commercial financing offers of $500,000 or less
Enforced by: Department of Financial Protection and Innovation (DFPI)

SBA

Where are the SBA offices in California?

The SBA doesn't lend directly. Banks, credit unions and other SBA-approved lenders make 7(a) and 504 loans, and the SBA guarantees part of each one. District offices connect businesses with counseling, training and local lenders.

The Sacramento District Office is in Citrus Heights, not downtown Sacramento.

How SBA loans work

6 locations

Los AngelesLos Angeles District OfficeLos Angeles, Santa Barbara and Ventura counties
Santa AnaOrange County / Inland Empire District OfficeOrange, Riverside and San Bernardino counties, with a second office in Palm Desert
San DiegoSan Diego District OfficeSan Diego and Imperial counties
San FranciscoSan Francisco District Office14 Bay Area and coastal counties
Citrus HeightsSacramento District Office21 counties in northeastern California
FresnoFresno District Office

State programs

What state loan programs does California offer?

California's state programs work through lenders: the state backs the loan, and the business borrows from a bank, credit union or community lender. California's federal State Small Business Credit Initiative allocation, $1.18 billion, runs through IBank and the State Treasurer's CalCAP.

These are state programs. Sagamore doesn't run them or decide who qualifies.

IBank Small Business Loan Guarantee ProgramCalifornia Infrastructure and Economic Development Bank (IBank)Guarantees loans to businesses with 1 to 750 employees that face barriers to credit, through one of seven Financial Development Corporations.
CalCAP for Small BusinessCapital Programs & Climate Financing Authority, State TreasurerA loan loss reserve for participating lenders on loans and lines of credit up to $5 million.
CalCAP Collateral SupportCapital Programs & Climate Financing Authority, State TreasurerCash collateral that helps a business meet a lender's collateral requirement.
CalCAP Loan Participation ProgramCapital Programs & Climate Financing Authority, State TreasurerThe state takes a share of a participating lender's loan.

Industries

Which California industries do we work with?

California has 4.3 million small businesses, 99.8% of all businesses in the state, according to the SBA Office of Advocacy's 2026 profile. We work with established businesses in every industry; these are the ones that stand out in California.

Eligibility

What do you need to qualify for a business loan in California?

The same as in every other state. Sagamore is a broker, not a lender: one application is matched with lenders across all 50 states, and every program starts from the same minimums. We work with established businesses only, so startups are not eligible.

Credit score: 600+
Time in business: 1+ year
Annual revenue: $400K+

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Frequently Asked Questions

Common questions about business loans in California

Non-bank providers do, on commercial financing of $500,000 or less. Under SB 1235 and the DFPI's rules, the disclosure shows the APR or an estimated APR, the total dollar cost, the term and the payments, and you sign it before the deal closes. Banks and credit unions are exempt.

Yes. The DFPI's rules cover merchant cash advances and factoring as well as term loans and lines of credit. Products without a monthly payment must show an average monthly cost, so you can compare them with a loan.

IBank guarantees part of a loan so a lender will make it to a business with 1 to 750 employees that has trouble getting credit. You apply through one of seven Financial Development Corporations, which work with your lender.

California has six SBA district offices: Los Angeles, Santa Ana for Orange County and the Inland Empire, San Diego, San Francisco, Citrus Heights for the Sacramento district, and Fresno.

Sources

Where do these facts come from?

Each fact on this page was checked against the agency or legislature that publishes it. Programs and offices change, so confirm the details with the source before you rely on them.