Stories from the Field: Megan Hodapp

Can you tell us about the California Small Business Loan Match?

California Small Business Loan Match is a new lender-match tool provided by the California Infrastructure and Economic Development Bank (IBank)as an extension of its Small Business Loan Guarantee Program. We created CA Loan Match to streamline the process of finding trusted loans for California entrepreneurs, bringing dozens of lenders together on one platform for a one-stop experience. All lenders have been pre-vetted and enrolled in IBank’s Loan Guarantee Program, which specializes in bridging the gap between responsible lenders and small businesses. The Loan Guarantee Program leverages funding from the State Small Business Credit Initiative (SSBCI). 

What challenges do small businesses face in finding capital?

For many small businesses, the challenge isn't that capital doesn't exist—it's that finding the right financing partner at the right time can feel impossible. In a state as large and diverse as California, bridging that gap requires more than funding alone. It requires infrastructure, trusted partnerships, and scalable solutions that connect entrepreneurs to opportunity.

How did the Initiative for Inclusive Entrepreneurship help connect small businesses to capital?

Through the Milken Institute's Initiative for Inclusive Entrepreneurship (IIE), implementation partner Next Street worked alongside IBank to help strengthen the state's deployment of SSBCI funding. Together, they developed the California Small Business Loan Match platform, a statewide solution designed to connect entrepreneurs with mission-driven lenders while simplifying participation for community lenders and the state.

The challenge was significant. California's SSBCI Loan Guarantee Program relied on a broad network of participating lenders, yet many small businesses were unaware of available financing opportunities. At the same time, many community development financial institutions (CDFIs) lacked the marketing capacity to consistently reach prospective borrowers, while administrative reporting requirements created additional burdens for lenders and state agencies. The result was a disconnect between available capital and the businesses it was intended to serve.

To address these barriers, Next Street partnered with IBank to design and launch a centralized borrower-lender matching platform supported by a comprehensive, multichannel marketing strategy. The platform created a single intake and referral process that connects entrepreneurs with vetted participating lenders based on their financing needs.

The solution extended well beyond a matching tool. Community-based organizations were activated to increase awareness in underserved communities, while digital, social media, search, and local outreach campaigns helped drive applications from entrepreneurs who might otherwise never have engaged with the program.

Equally important, backend technology was integrated through Community Reinvestment Fund technology, creating a standardized reporting infrastructure that streamlined referrals, reduced administrative burden, and improved data tracking for participating lenders and the state. This public-private partnership blended public resources with private-sector expertise to build a scalable model that supports long-term ecosystem growth.

What has been the result of this effort?

Since launching in April 2024, the results have demonstrated the power of pairing technology with intentional outreach. More than $4 million in loans have been deployed through 74 transactions. Eighty-two percent of borrowers served are businesses with diverse ownership, including women-, Black-, and Latino-owned companies. The platform has also successfully reached the smallest businesses, with 83 percent of loans totaling $100,000 or less and 86 percent supporting businesses with five or fewer employees.

How scalable is this model?

California's experience demonstrates that expanding access to capital is not solely about increasing the availability of funding. It is about building systems that enable entrepreneurs to discover opportunities, connect with trusted lenders, and move efficiently through the financing process.

As jurisdictions across the country continue implementing and preparing for the long-term future of SSBCI, California's statewide Loan Match platform offers a replicable model. By combining centralized borrower intake, coordinated marketing, technology-enabled reporting, and strong public-private collaboration, the model bridges awareness and access gaps while integrating seamlessly with CDFIs and public lending programs.

Why are partnerships like the Milken Institute important for SSBCI administrators?

Through IIE's partnership, this approach shows how ecosystem infrastructure can transform public investment into measurable outcomes, ensuring capital reaches the small businesses, entrepreneurs, and communities it was designed to serve.