The Cash Collateral Support (CCS) program provides a cash deposit as additional collateral for a business loan when the business cannot meet the lender’s collateral requirements.
The maximum loan size allowed is $10 million and the business borrower must have less than 750 employees. The program is capped at deposits of 25 percent of the loan amount or $250,000 (whichever is less).
Please Note: Funding for Cash Collateral Support is subject to availability and loan eligibility.
Lender Benefits
- Strengthens lender’s LTV
- Cash collateral deposits are held by the lender
- Most businesses and loan types are eligible
CCS Example
| Collateral | Value | Margin | Lending Capacity |
|---|---|---|---|
| Equipment | $323,000 | 65% | $210,000 |
| Cash Deposit | $70,000 | 100% | $70,000 |
| Total | $280,000 |
- Manufacturer
- $280,000 line of credit approved by lender, secured by existing equipment
- Equipment was valued at $323,000
- Bank limits were 65 percent LTV on used equipment
- A $70,000 cash deposit was provided through CCS
Employee Ownership
- One of the goals of this program is to support employee ownership business transitions and financing for employee-owned businesses. For additional resources visit the Office of Employee Ownership.
- Collateral caps may be increased for certain transaction types including those that support employee ownership.