Today's Law As Amended


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AB-2376 Office of Small Business Advocate: one-stop capital shop online platform.(2021-2022)



As Amends the Law Today


SECTION 1.
 This act shall be known, and may be cited, as the One-Stop Capital Shop Act of 2022.
SEC. 2.
 The Legislature finds and declares as follows:
(a) Small businesses are the backbone of California’s economy, employing nearly one-half of all workers in the state.
(b) Access to capital is central to the longevity of any small business and programs aimed at increasing such access have been in place for years.
(c) Still, eliminating barriers in access to affordable capital, especially for small business owners from underrepresented backgrounds, remains a challenge.
(d) Further, record levels of small business registrations were filed during the pandemic as the needs and wants of the workforce shifted, further increasing the amount of capital needed to keep small businesses open.
(e) Access to affordable capital remains a stumbling block for many small business owners in starting or expanding their business, particularly those business owners from underrepresented backgrounds.
(f) One of the barriers to accessing safe and transparent capital is the time-intensive process of researching and applying for various sources of funding one at a time, as many small business owners have little to no administrative support in this process.
(g) Additionally, mission-driven and nonprofit community lenders may not have access to sophisticated technology and platforms enjoyed by for-profit lenders on the private market, creating an additional barrier for small business owners to access affordable capital.
(h) While there are numerous programs, tools, and organizations supporting small businesses in meeting their needs for capital, a lack of coordination among these sources increases the time and resources required for a small business to ultimately secure the capital they seek.

SEC. 3.

 Section 12098.6.1 is added to the Government Code, to read:

12098.6.1.
 (a) (1) The office shall serve as the lead state government entity for helping California small businesses become finance-ready relative to state programs utilizing federal funds received by the state from the federal State Small Business Credit Initiative (Chapter 54 (commencing with Section 5701) of Title 12 of the United States Code).
(2) In creating this pipeline of finance-ready small businesses, the office shall prioritize business enterprises owned and controlled by socially and economically disadvantaged individuals, as defined in Section 5701 of Title 12 of the United States Code.
(3) The one-stop capital shop, launched pursuant to subdivision (c), shall serve as one of the tools used by the office to facilitate its work in coordinating, integrating, and amplifying outreach to qualifying small businesses throughout the state.
(b) (1) The office may engage with the federal Comptroller of the Currency, Federal Reserve Board, Federal Deposit Insurance Corporation, and the Equity Hub of the United States Treasury, and other federal and state entities with similar missions to identify and mitigate barriers to accessing capital by small businesses in underserved communities, including rural areas and inner cities, and undercapitalized small business owners.
(2) The office may seek other federal, state, regional, and local public and private partners as appropriate and necessary to creating a robust pipeline of finance-ready small businesses.
(c) On or before July 1, 2023, the office shall launch a “one-stop capital shop” online platform to assist small businesses in accessing safe funding opportunities and to reduce barriers to accessing affordable capital that shall include all of the following:
(1) (A) A small business loan marketplace that allows small businesses and technical and financial assistance providers to access information on public and private loan products and credit enhancement opportunities.
(B) On or before October 1, 2023, the platform shall include financial institutions participating in state loan guarantee and loss reserve programs that are funded with federal State Small Business Credit Initiative funding.
(2) Functionality that supports small businesses sending messages and connecting with small business technical assistance providers who are participating in the California Small Business Technical Assistance Expansion Program created pursuant to Article 7 (commencing with Section 12100.60).
(3) Functionality that supports a small business credit-ready assessment tool that shall be capable of doing all of the following:
(A) Providing a preliminary assessment of a business’ current credit readiness.
(B) Identifying areas of weakness in a business’ credit readiness based on a standardized list of credit-ready qualifications.
(C) Making direct referrals to the state’s network of small business technical and financial assistance providers who can provide training and one-on-one counseling to improve business fundamentals.
(D) Otherwise assisting a small business in becoming a stronger loan candidate.
(4) Functionality that allows a small business owner to establish a secure online account from which a standardized business profile can be stored and deployed by the business when submitting information to prospective lenders who have signed up to participate in the one-stop capital shop.
(5) Educational materials that include basic information describing and differentiating the various available small business financing mechanisms shall be provided in a frequently asked questions (FAQ) format and other easily understandable formats.
(6) Links to reliable funding platforms, including, but not limited to, state- and federal-sponsored websites with information on grants, loans, and venture funds, when available.
(7) Links to reliable information regarding small business development opportunities and issues, including, but not limited to, small business certification and state procurement opportunities, regulatory compliance, and climate adaptation and mitigation for small businesses.
(d) The one-stop capital shop shall build upon and help bring awareness to other small business resources that have been mandated to be available on the office’s website, including, but not limited to, resources made available pursuant to both of the following:
(1) Paragraph (2) of subdivision (c) of Section 12098.4.
(2) Section 12098.6.
(e) The office shall include a summary of the activities it has undertaken pursuant to this section in the annual report the office submits to the Governor and the Legislature pursuant to Section 12098.4.