Zero-Emission Truck Loan Pilot Project
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Who is Eligible
Small businesses that are transitioning to zero-emission vehicles and qualifying financial institutions. However, fleets sizes that will qualify have yet to be determined.
How it’s Administered
The program is administered by the California Pollution Control Financing Authority (CPCFA) through their California Capital Access Program (CalCAP). Through CalCAP’s Independent Contributor Program, California Air Resources Board (CARB) contributes a percentage of each enrolled loan into a “loan loss reserve” account. In the event of a qualifying loan default, the lender can request reimbursement for the principal loss from CPCFA and the amount is deducted from the lender’s loan loss reserve account. With these funds available, lenders are better equipped to lend to businesses that need a little extra assistance, and typically offer more favorable terms than the business would otherwise qualify for.
Where and When it’s Offered
The Zero-Emission Truck Loan Pilot Project will be offered statewide. The program is currently under development and staff is considering stakeholder feedback to develop the pilot with an anticipated early 2024 launch date.
Project Funding or Participation Requirements
- $5 million is allocated for the initial pilot (from the 2022-2023 funding cycle)
- Lenders must enroll with CPCFA to participate
- Eligible small fleets will apply for a loan through a participating lender
- Specific details on fleet size and contribution rates are still under development