Day 7 PBC — Confidential — Prepared for Vince Caruso — Not for Redistribution
Module 03 · Capital Access & Funding

Grants & Funding

Every federal, state, and local program Carlos qualifies for — with dollar amounts, eligibility criteria, application timelines, and the strategy to access $200K–$600K in Year 1.

$50KSBA Microloan
$5MSBA 7(a) Max
$350KCommunity Advantage
12+Programs Accessible
Carter Hill, CEO · Day 7 Public Benefit Corporation · May 2026
At a Glance

Part 1 · Federal Programs

ProgramMax AmountRateTermBest For
SBA Microloan$50,0006–9%Up to 6 yearsWorking capital, tools, vehicle down payment
SBA 7(a)$5,000,000Prime + 2.25–2.75%7–25 yearsEquipment, real estate, large working capital
SBA 504$5,500,000Fixed (below market)10–20 yearsReal estate, heavy equipment
Community Advantage$350,000Prime + 2.75%7–10 yearsUnderserved markets, minority-owned
SBA 8(a) ProgramSole-source to $4.5MN/A (contracts)9 yearsFederal set-aside contracts
SBA Surety Bond Guarantee$6.5M per contractN/A (bond guarantee)Per projectPublic works bonding when too new for market
The SBA Surety Bond Guarantee — Carlos’s Secret Weapon

New contractors cannot get bonded through traditional surety companies because they lack financial history. The SBA Surety Bond Guarantee Program solves this: SBA guarantees up to 90% of the bond, reducing the surety’s risk to almost zero. This means Carlos can get bonded for projects up to $6.5M with the SBA backing — even as a 4-month-old company. Apply through any SBA-approved surety (Western Surety, Travelers, Liberty Mutual). Processing: 2-3 weeks.

Part 2 · California State Programs

ProgramWhat It DoesAmountEligibility
CalOSBA Loan GuaranteeGuarantees 80-95% of bank loanUp to $20MCA small business, bankable project
IBank Small Business FinanceDirect loans & guarantees$500K–$10MCA business, job creation
CA Capital Access Program (CAP)Portfolio insurance for lendersUp to $2.5MAny CA small business
GO-Biz GrantsVarious incentive programsVariesNew businesses in target industries
CA Dream FundMicro-grants for underservedUp to $10,000Low-income, immigrant, minority entrepreneurs

Part 3 · Local & Regional Resources

Part 4 · Construction-Specific Capital

0%
Equipment Financing
Cat, Kubota, Bobcat, and John Deere dealers routinely offer 0% for 12–24 months on new equipment. Used equipment: 4–7% through equipment finance companies. No seasoning required — the equipment IS the collateral.
Net-30
Supplier Trade Credit
HD Supply, Ferguson, and local lumber yards extend Net-30 trade accounts to licensed contractors immediately upon presenting CSLB license + GL insurance certificate. This is $10K–$50K in interest-free working capital from day one.
$6.5M
SBA Bond Guarantee
Federal guarantee on surety bonds allows new contractors to bid public works projects years before traditional bonding would be available. 90% guarantee eliminates surety risk. 2–3 week processing.
$150K
Vehicle & Truck Financing
Work trucks (F-250, Ram 2500, Silverado 2500HD) financed at 3–6% over 60–72 months. Over 6,000 lbs GVWR = full Section 179 deduction in year of purchase. Effective cost reduced 25–37% after tax benefit.

Part 5 · Application Strategy

Week 1
SBDC Consultation (Free)
Schedule intake with OC SBDC. They will review financials, help package loan applications, and connect Carlos to CDFIs. Zero cost, massive leverage.
Week 2
SBA Surety Bond Guarantee Application
Apply through an SBA-approved surety. Submit: CSLB license (once issued), financial statement, project list. This unlocks public works bidding.
Week 3-4
Equipment Dealer Financing
Visit Cat Rental Store (Anaheim), Sunbelt Rentals, United Rentals. Establish accounts. Get pre-approved for 0% equipment financing on first major purchase.
Week 4-6
SBA Microloan Application
Apply through CDC Small Business Finance (San Diego/OC) or Valley Economic Development Center. Target: $25K–$50K for working capital + tools.
Month 3-4
SBA 8(a) Certification (If Eligible)
Begin 8(a) application. Requires: personal net worth under $750K (excluding home + business), social disadvantage narrative, economic disadvantage proof. Processing: 90 days. Payoff: sole-source federal contracts to $4.5M for 9 years.
$575K+Total Accessible Y1
6Programs to Apply
90 dayFirst Funding Timeline
$0Cost to Apply