Main Street Monday: How a CDFI is Using Philanthropic Capital from Wells Fargo to Help Small Businesses Break Into Government Contracting

July 21, 2025

Bob Coleman
Founder & Publisher

Main Street Monday: How a CDFI is Using Philanthropic Capital from Wells Fargo to Help Small Businesses Break Into Government Contracting

For small businesses looking to grow by entering the government contracting space, accessing affordable working capital can be the difference between success and stagnation. Recognizing this gap, California Capital Financial Development Corporation —a mission-driven CDFI—has launched a targeted new loan fund designed to help small businesses get their foot in the door with public sector buyers. Backed by a $500,000 philanthropic grant from Wells Fargo, the California Capital Flex Loan Fund delivers fast, flexible financing for contractors pursuing new opportunities.

Filling the Gap Between Invoicing and Payment

Contracting with government agencies is a proven way for small businesses to scale—but it comes with cash flow challenges. Contractors must often front labor and materials, submit an invoice, and then wait 30, 60, even 90 days for payment. For early-stage firms, that delay can be debilitating.

California Capital’s new Flex Loan Fund is built to solve that problem. With loan amounts ranging from $5,000 to $150,000, the fund offers no-interest payments for up to 12 months, no penalties for early payoff, and can be used for working capital needs like bonding, labor, or supplies. It’s an ideal product for “contract-ready” firms that need patient capital to perform and grow.

“This is fast but patient capital,” says Deborah Lowe Muramoto, President and CEO of California Capital. “With this new Flex Loan Fund, we will be able to reach more businesses who are uplifting their communities, creating jobs, and driving California’s economic growth.”

More Than Just Capital—It’s a Pathway to Inclusion

The Flex Loan Fund officially launched at the Small Business Capital Connection, a public networking event that brought together small businesses, lenders, and state agencies at the California Department of General Services headquarters in West Sacramento. The event served as a real-time matchmaking opportunity for small businesses seeking financing and access to procurement resources.

Funded in part by Wells Fargo’s Community Impact team, the initiative underscores the role of CDFIs in bridging access to capital where traditional banks often hesitate.

“One of the fastest pathways for small businesses to grow and help create local jobs is to obtain a contract,” says Kären Woodruff, Senior Vice President of Philanthropy and Community Impact at Wells Fargo. “We’re proud to work with California Capital to help them offer small business owners a flexible avenue to capital and coaching during the contract and procurement process.”

California Capital has served entrepreneurs since 1982, focusing on underserved markets including women-, minority-, and veteran-owned businesses. As a certified CDFI, the organization brings deep experience in delivering mission-driven finance solutions.