AB 780, as amended, Bocanegra. Small business financial development corporations.
The California Small Business Financial Development Corporation Law authorizes the formation of small business financial development corporations to grant loans or loan guarantees for the purpose of stimulating small business development. These provisions, including the small Business Loan Guarantee Programs are administered by an executive director, who is appointed by the Secretary of the Business, Transportation and Housing Agency. Commencing July 1, 2013, the duties of the agency with respect to these provisions became vested in the Governor’s Office of Business and Economic Development.
This bill would appropriate $2,000,000 from the General Fund to the Governor’s Office of Business and Economic Development, and would require the Executive Director of the Small Business Loan Guarantee Program to distribute these funds to the financial development corporations, as specified, for their ongoing administrative operations.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 14063 is added to the Corporations Code,
2to read:
(a) The Legislature finds and declares that the workload
4of California financial development corporations has increased
5significantly since the state’s receipt of funds from the federal
6government pursuant to the Small Business Jobs Act of 2010
7(Public Law 111-240).
8(b) (1) The sum of two million dollars ($2,000,000) is hereby
9appropriated from the General Fund to the Director of the
10Governor’s Office of Business and Economic Development, for
11the purpose of providing administrative funding to financial
12development corporations under this part. These funds shall be
13allocated to the executive director, who shall distributebegin delete one hundred begin insert
one hundred eighty-one thousand
14fifty thousand dollars ($150,000)end delete
15eight hundred eighteen dollars ($181,818)end insert to each financial
16development corporation, for expenditure for the purposes
17described in this section, and shall be available for this purpose
18until the federal funding referenced in subdivision (a) has been
19exhausted.
20(2) Funds provided pursuant to this subdivision shall be used
21to supplement, and shall not supplant, other General Fund or other
22moneys made available for financial development corporation
23administration.
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