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AB-2211 Capital Access Loan Program.(2017-2018)

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Date Published: 02/12/2018 09:00 PM
AB2211:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2211


Introduced by Assembly Member Limón

February 12, 2018


An act relating to the Capital Access Loan Program.


LEGISLATIVE COUNSEL'S DIGEST


AB 2211, as introduced, Limón. Capital Access Loan Program.
Existing federal law, the federal State Small Business Credit Initiative Act of 2010, provides funding to qualified state-run programs that support lending to small businesses, including state-run capital access loan programs and collateral support programs. Existing law establishes the Capital Access Loan Program to assist qualified small businesses in financing the costs of complying with environmental mandates and the remediation of contamination on their properties, which is administered by the California Pollution Control Financing Authority. Under the program, the authority may enter into contracts with participating financial institutions and is required to establish a loss reserve account with participating financial institutions. Under existing law, a participating financial institution that experiences a default on a qualified loan enrolled in the Capital Access Loan Program may obtain reimbursement from the authority by submitting a claim for reimbursement for a specified amount of the loss covered by that loan, subject to certain procedures.
Existing administrative law establishes the Collateral Support Program within the Capital Access Loan Program in order to provide a cash deposit to cover a collateral shortfall to a qualifying loan, subject to procedures and standards that are similar to the Capital Access Loan Program as described above.
This bill would state the intent of the Legislature to enact subsequent legislation that would expand the Capital Access Loan Program, including the Capital Access Loan Program for Small Business and the Collateral Support Program, in order to provide additional funding for businesses willing to embrace sustainable business practices and eco-friendly infrastructure changes.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 It is the intent of the Legislature to enact subsequent legislation that would expand the Capital Access Loan Program, including the Capital Access Loan Program for Small Business and the Collateral Support Program, in order to provide additional funding for businesses willing to embrace sustainable business practices and eco-friendly infrastructure changes.