AB 1298, as introduced, Gipson. Small business financial assistance.
The Small Business Financial Assistance Act of 2013 requires a corporation, as defined, to implement its responsibilities under the act by, among other things, performing outreach to low-resource small businesses and microbusinesses, and collaborating with other organizations and lenders to identify and assist businesses that are creditworthy but face impediments to accessing conventional sources because of reasons, such as low equity, inadequate collateral, and unacceptable legal structure.
This bill would make nonsubstantive changes to these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 63088.6 of the Government Code is
2amended to read:
To implement its responsibilities, a corporation shall
4undertake program activities that shall include, but not be limited
5to,begin insert all ofend insert the following:
P2 1(a) Outreach to low-resource small businesses and
2microbusinesses. The corporations located in rural areas shall give
3priority to low-resource farmers and rural and agriculturally related
4businesses.
5(b) Collaboration with other organizations and lenders to identify
6and assistbegin delete thoseend delete businesses that are creditworthy but face
7impediments to accessing conventional sources because of
reasons,
8such as low equity, inadequate collateral, unacceptable legal
9structurebegin delete (suchend deletebegin insert, suchend insert as a co-op or nonprofitbegin delete organization),end delete
10begin insert organization,end insert management inadequacies, and language problems.
11(c) To the extent possible, bringing all possible financial
12resources to bear on the borrower’s problems, including, but not
13limited to, low-interest lenders, business and industrial
14development corporations (BIDCOs), minority enterprise small
15business investment companies (MESBICs), and other financial
16institutions, financial companies, and grantors.
17(d) Technical assistance to businesses receiving loans or
18guarantees that will maximize the probability of loan repayment.
19(e) Ongoing strategies for increasing program resources through
20private sector involvement and nonstate funds.
21(f) A program for collecting and liquidating defaulted loans so
22that the corporations can qualify to become full-service lenders
23under the Small Business Administration. Corporations located in
24rural areas shall, in addition, try to qualify for lender status under
25the United States Department of Agriculture’s Rural Development
26and Farm Services Agency.
27(g) Become an agent for other financial institutions and financial
28companies.
29(h) Become an agent for other
state or federal governmental
30agencies that need a qualified financial service provider, including,
31but not limited to, the State Energy Resources Conservation and
32Development Commission.
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