What is CAIP?
The Community Adjustment and Investment Program (CAIP) was established to assist U.S. companies doing business in areas of the country that have been negatively affected by the North American Free Trade Agreement (NAFTA). CAIP loans allow for the payment of fees on eligible loans, including the 7(a) Loan Program guaranty fee and the 504 program guaranty and CDC and lender fees. Depending on the size of the loan, these fees can be sizeable. CAIP works with SBA to reduce borrower costs and increase the availability of these programs.
To be eligible for CAIP, the small business must reside in a county, or a defined area within a county, noted as being negatively affected by NAFTA based on job losses and the unemployment rate of the county. There is also a job creation component. For 7(a) loans, one job has to be created for every $70,000 SBA guaranty. For 504 loans, one job has to be created for every $65,000 SBA guaranty.
Eligible CAIP Communities
Currently, many counties in 24 states are designated as eligible for CAIP. To find out if you are in an eligible area, go to All CAIP Eligible Counties.
For More Information
For more information, contact your nearest SBA District Office.