Reserve Fund Insurance
CAP is based on a unique portfolio insurance concept where the borrower and DCCEO each contribute a percentage of the total loan amount into a reserve fund to cover loan losses.
This reserve fund enables the financial institution to make loans beyond its conventional threshold. The more loans a lender makes, the larger the loan loss reserve grows, enabling the lender to make even riskier loans with this insurance coverage being provided.
The business enterprise receiving the loan must be an Illinois for-profit business, employing 500 or less. There are no minimum or maximum loan amounts.