Business Funding in California
California businesses access working capital, SBA loans, and equipment financing. Find lenders across LA, San Francisco, San Diego, and Sacramento.
California anchors the largest small-business economy in the country, concentrated in technology, food service, and construction. High labor and real-estate costs push operators toward working capital, equipment financing, and revenue-based products to keep pace with demand.
California commercial lending rules
California SB 1235 requires commercial lenders to provide APR disclosures for loans under $500,000.
Top industries funded in California
Business funding options in California
- Merchant Cash Advance — $5,000 – $500,000
- SBA Loan — $50,000 – $5,000,000
- Business Term Loan — $25,000 – $2,000,000
- Business Line of Credit — $10,000 – $500,000
- Equipment Financing — $5,000 – $5,000,000
- Invoice Factoring — $10,000 – $5,000,000
- Commercial Real Estate Loan — $250,000 – $25,000,000
- Bridge Loan — $100,000 – $10,000,000
- Revenue-Based Financing — $25,000 – $1,000,000
- Working Capital Loan — $10,000 – $500,000
- Startup Business Funding — $5,000 – $500,000
Business funding by city in California
- Anaheim
- Bakersfield
- Chino Hills
- Chula Vista
- Concord
- Corona
- Elk Grove
- Escondido
- Fontana
- Fremont
- Fresno
- Garden Grove
- Glendale
- Hayward
- Huntington Beach
- Irvine
- Lancaster
- Long Beach
- Los Angeles
- Modesto
- Moreno Valley
- Oakland
- Oceanside
- Ontario
- Oxnard
- Palmdale
- Pomona
- Rancho Cucamonga
- Riverside
- Roseville
- Sacramento
- Salinas
- San Diego
- San Francisco
- San Jose
- Santa Ana
- Santa Barbara
- Santa Clara
- Santa Clarita
- Santa Rosa
- Simi Valley
- Stockton
- Sunnyvale
- Thousand Oaks
- Torrance
- Victorville
- Visalia
Frequently asked questions
What is California SB 1235 and how does it affect business borrowers?
SB 1235, effective December 9, 2022, requires providers of commercial financing — including MCA companies, lenders, and brokers — to disclose an APR equivalent, total payment amount, and other key terms on financing of $500,000 or less before the deal is consummated. This makes California one of the most borrower-protective states in the nation for small business financing. The DFPI enforces compliance and can penalize non-disclosing providers.
Do I need to work with a DFPI-licensed broker in California?
Yes — brokers who facilitate commercial financing in California are required to register with the DFPI under the California Financing Law or obtain a commercial financing broker registration. Working with an unregistered broker puts you at risk of reduced legal protections. Always ask your broker for their DFPI license or registration number before engaging.
What industries get funded most in California?
Technology, food and beverage, real estate, healthcare, and restaurants represent the highest loan volumes in California. SBA lending is especially active in the Bay Area among early-stage tech companies, while Southern California drives strong MCA and equipment financing volume for construction, food service, and trucking businesses.
Are there California-specific small business grant or loan programs?
California has several notable programs: the California Small Business COVID-19 Relief Grant (now concluded but often renewed), the IBank Small Business Finance Center loan guarantee program, and the California Rebuilding Fund which provides low-interest loans to underserved businesses. CDFIs like Accion Opportunity Fund, Pacific Community Ventures, and CDC Small Business Finance are among the most active lenders for businesses that don't qualify for traditional bank products.
How does California's high cost of doing business affect loan sizes?
California's elevated real estate costs, labor regulations, and compliance overhead mean businesses generally need larger working capital reserves and higher revenue to sustain operations. This tends to push average loan sizes up compared to other states, and underwriters often account for California-specific cost structures in their cash flow analysis. SBA loan limits extend to $5M, which is frequently utilized by California businesses with larger capital needs.
