Truck Loan Assistance Program
Launched in 2009, the Truck Loan Assistance Program helps small-business fleet owners affected by CARB’s In-Use Truck and Bus Regulation to secure financing for upgrading their fleets with newer trucks. The program is implemented in partnership with the State Treasurer’s Office’s California Pollution Control Financing Authority (CPCFA) through its California Capital Access Program (CalCAP) and leverages public funding with private funding from participating lending institutions. The Truck Loan Assistance Program helps small business truck owners that fall below conventional lending criteria and are unable to qualify for traditional financing for cleaner trucks. State funds are deposited as “contributions” (based on a percentage of each enrolled loan amount) into a loan loss reserve account for each participating lender to cover potential losses resulting from loan defaults. The program is available for small fleets with 10 or fewer trucks at the time of application. Lenders use their traditional underwriting standards to establish loan terms; however, the program currently includes an interest rate cap of 20 percent.
Loan Application Process
- The borrower applies for a loan at a CalCAP lender participating in CARB's program and fills out the Borrow Eligibility Criteria and Certification Form. CalCAP lenders and truck dealerships may be able to assist the borrower in completing this form. In addition, the borrower completes the lender's required loan application forms.
- If the borrower qualifies, based on the lender's loan underwriting standards, loan documents are prepared and signed by the borrower and lender.
- Lender disburses funds to the borrower.
- The borrower must have 100 or fewer employees, and $10 million or less in annual revenue, averaged over three years.
- Fleets must have 10 or fewer heavy-duty vehicles subject to the In-Use Truck and Bus Regulation.
Financeable Vehicles and Equipment
Loan proceeds may be used to purchase (not refinance) on-road heavy-duty vehicles and equipment to help fleet owners comply with the Truck and Bus Regulation. Potential products available for financing include:.
- Used and new trucks with 2010 and newer model year engines CARB-certified to 2010 and later model year emissions standards.
- The engines can use diesel fuel, compressed natural gas (CNG), liquefied natural gas (LNG) or other fuels including zero-emission technology.