California Investment and Innovation Program (Cal IIP)

The California Investment & Innovation Program (Cal IIP), administered by the California Pollution Control Financing Authority (CPCFA), provides annual grants to community development financial institutions (CDFIs) that serve economically disadvantaged communities throughout California. Cal IIP is authorized by legislation codified in the Health & Safety Code, Sections 44558–44558.5, and aims to form long-term partnerships with CDFIs to help the state deploy resources equitably and support inclusive economic recovery. The program prioritizes assistance in areas such as affordable housing, health care, small business development, and economic revitalization. CDFIs that receive funding through Cal IIP can use the grants in two primary ways: as working capital to enhance operations and service delivery in line with their community development mission, and to increase their total net assets to strengthen their capacity to attract additional investment. Eligible uses of funds include, but are not limited to, affordable housing development, preservation or renovation, job creation for low-income individuals, support for childcare facilities, and improved access to financial services in underserved communities. These eligible activities are specifically designed to promote community revitalization, stability, and economic opportunity. To be eligible for Cal IIP, an applicant must hold current federal CDFI Fund certification under Title 12, Section 1805 of the Code of Federal Regulations. Applicants must also meet baseline financial criteria including a net worth of at least $25,000 and a lending history of at least five loans in the twelve months preceding the application. Additionally, applicants must demonstrate significant activity in California either by having their principal office and officers based in the state, allocating at least 25% of their loan portfolio to California borrowers or projects, or having provided at least $10 million in financial assistance within the state over the previous three years. Cal IIP grants are distributed using a two-tier system. Tier 1 provides up to $100,000 for all eligible applicants. Tier 2 provides an additional $100,000 (for a total maximum of $200,000) for applicants that have either made at least 10 loans in the most recent fiscal year or provided a cumulative $10 million in financing within California over the past three fiscal years. Twenty percent of total available funds are set aside for small and emerging CDFIs and equally divided among all eligible applicants within that classification. The total funding pool for the 2025–2026 grant cycle is $10 million. The grant application opened on August 6, 2025, and will close on October 1, 2025, at 5:00 PM PDT. All application materials must be submitted electronically to applications.caliip@treasurer.ca.gov. A virtual application workshop will be held on September 10, 2025, from 11:00 AM to 12:00 PM PDT. Awards will be announced in February 2026 following review and presentation to the CPCFA Board in January 2026. Awardees will enter into a formal grant agreement through DocuSign outlining all federal and state compliance requirements. All submitted application materials are considered public records under the California Public Records Act. For inquiries, applicants may contact Andrea Gonzalez, Program Manager, at caliip@treasurer.ca.gov or (916) 654-5610. Additional program details, including statutes, regulations, and application forms, are available at https://www.treasurer.ca.gov/cpcfa/caliip/index.asp.