AB 1247, as amended, Medina. Business investments: Small Business Financial Assistance Act of 2013.
Existing law, the California Small Business Financial Development Corporation Law, creates the California Small Business Board and the California Small Business Expansion Fund, a continuously appropriated fund, which includes General Fund moneys. Existing law authorizes the formation of small business financial development corporations to grant loans from, or guarantee loans made by a financial institution or financial company, as defined, against, moneys awarded to the corporation from the expansion fund for the purpose of stimulating small business development. Existing law authorizes a director designated by the Secretary of Business, Transportation and Housing to perform specified duties under that law. A violation of certain conflict-of-interest provisions by the director and other persons, as specified, is a crime.
This bill would revise and
recast these provisions, and would transfer the administration of the California Small Business Financial Development Corporation Law to the
begin delete Governor’s Office of Business and Economic Development and an executive directorend delete designated by the begin delete director of the office,end delete as specified. The bill would expand the definitions of “financial institution” and “financial company” for those purposes. Because the above-described conflict-of-interest provisions would apply to the director and executive
director, and other officers and employees, as specified, the bill would extend the application of a crime, and impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Because this bill would expand the purposes for which a continuously appropriated fund is expended, the bill would make an appropriation.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Chapter 1 (commencing with Section 14000) of
2Part 5 of Division 3 of Title 1 of the Corporations Code is repealed.
Chapter 1 (commencing with Section 14000) is added
4to Part 5 of Division 3 of Title 1 of the Corporations Code, to read:
This chapter shall be known and may be cited as the
12California Small Business Financial Development Corporation
(a) It is the intent of the Legislature in enacting this
15chapter to promote the economic development of small businesses
P3 1by making available capital, general management assistance, and
2other resources, including loan and equity investment services,
3personnel, and business education to small business entrepreneurs,
4including women and minority owned businesses, for the purpose
5of promoting the health, safety, and social welfare of the citizens
6of California, to eliminate unemployment of the economically
7disadvantaged of the state, and to stimulate economic development,
8employment, minority group, women, and disabled persons
10(b) It is the further intent of the Legislature to provide a flexible
11means to mobilize and commit all available and potential resources
12in the various regions of the state to fulfill these objectives,
13including federal, state, and local public resources, and private
14debt and equity investment.
15(c) It is the further intent of the Legislature that corporations
16operating pursuant to this law, shall to the maximum extent
17feasible, coordinate with other job and business development
18efforts within their region directed toward implementing the
19purpose of this part.
20(d) It is the further intent of the Legislature to provide expanded
21resources allowing participation by small and emerging contractors
22in state public works contracts. Increased access to surety bonding
23resources will assist in supporting participation by those firms in
24public works contracts, and by stimulating increased participation
25by small firms, the state will benefit from increased competition
26and lower bid costs.
If any provision of this chapter or the application thereof
28to any person or circumstances is held invalid, this invalidity shall
29not affect other provisions or applications of the chapter which
30can be given effect without the invalid provision or application,
31and to this end the provisions of this chapter are severable.
Unless the context otherwise requires, the definitions
36in this section shall govern the construction of this chapter.
P4 1 “Board of directors” means the board of directors of the
4 “Corporation” means any nonprofit California small business
5financial development corporation created pursuant to this chapter.
8(c) “Director” means the director of the Governor’s Office of
9Business and Economic Development.
10(d) “Executive director” means the person designated to this
11title by the director of the Governor’s Office of Business and
14 “Expansion fund” means the California Small Business
28 “Loan committee” means a committee appointed by the board
29of directors of a corporation to determine the course of action on
30a loan application pursuant to
begin delete Title 25 (commencing with Section of the Government Code.
37 “Trust fund” means the money from the expansion fund that
38is held in trust by financial institution or financial company. A
39trust fund is not a deposit of state funds and is not subject to the
40requirements of Section 16506 of the Government Code.
P5 1(h)end delete
2 “Trust fund account” means an account within the trust fund
3that is allocated to a particular small business financial
4development corporation for the purpose of paying loan defaults
5and claims on bond guarantees for a specific small business
6financial development corporation.
begin delete executive directorend delete shall do
11all of the following:
13 Administer this chapter.
14(b) Expeditiously approve or disapproveend delete
15 the articles of incorporation
begin delete and any subsequent . This
17amendments to the articles of incorporation of a corporationend delete
18determination shall be based upon the following:
20 Review of the articles of incorporation and bylaws of the
21corporation to determine whether they contain the provisions
22required by this chapter and conform with the regulations adopted
23pursuant to this chapter.
25 A determination as to whether the
26expressed in Section 14001 shall be served by the proposed
29 A determination as to whether the responsibility, character,
30and general fitness of the individuals who will manage the
31corporation are such as to command the confidence of the state
32and to warrant the belief that the business of the proposed
33corporation will be honestly and efficiently conducted in
34accordance with the intent and purpose of this chapter and that
35they include representatives of the financial and business
36community, as well as the economically disadvantaged.
38 Have the accounts of each corporation formed under this
39chapter audited as of the close of business on June 30 of each year.
P6 1 Have the portfolio of each corporation audited a minimum
2of once a year. Material audit exceptions that are not corrected by
3the corporation within a reasonable period of time may result in
4the suspension of the corporation pursuant to Section
begin delete 200008end delete
5 of the Government Code.
7 Review reports from the Department of Business Oversight
8and inform corporations as to what corrective action is required.
10 Examine, or cause to be examined, at any reasonable time,
11all books, records, and documents of every kind, and the physical
12properties of a corporation. The inspection shall include the right
13to make copies, extracts, and search records.
14(g) Attendend delete
15 and participate at
16corporation meetings. The
begin delete executive director,end delete
17 or his or her designee, shall be an ex officio, nonvoting
18representative on the board of directors and loan committees of
19each corporation. The
begin delete executive directorend delete shall
20meet with the board of directors of each corporation at least once
21each fiscal year, commencing January 1, 2014.
Upon approval by the
begin delete executive directorend delete to
24become a corporation, an entity shall adopt or amend its articles
25of incorporation to comply with the following:
26(a) The name of the corporation shall include the words “small
27business financial development corporation,” except for those
28corporations formed pursuant to this chapter prior to 2002, which
29may also be called “small business development corporations,” or
30those formed prior to 1985, which may also be called “rural or
31urban development corporations.”
32(b) The purposes for which the corporation is formed, which
33shall be those specified in Section 14001. This requirement shall
34not be deemed to preclude a statement of powers.
35(c) A geographical description of the corporation’s
36 service area.
37(d) The name and addresses of seven or more persons who are
38to act in the capacity of directors until the selection of their
P8 1(e) That the corporation is organized pursuant to the California
2Small Business Financial Development Corporation Law.
begin delete executive directorend delete determines that the facts
4disclosed by the investigation provided by Section 14004 are true
5and finds that the proposed incorporation meets all the requirements
6of this chapter, the
begin delete executive directorend delete shall
7approve the articles of incorporation and endorse the approval
8thereon and forward the same to the Secretary of State for his or
9her approval and filing. Likewise, the
begin delete executive directorend delete
shall begin delete approve or disapprove of all amendments to the .
11articles. The executive director shall endorse the approval on the
12amendatory document before the document is forwarded to the
13Secretary of State for his or her approval and filingend delete
The corporation’s existence as a small business
17development corporation begins upon the filing of the articles with
18the Secretary of State and continues perpetually, unless otherwise
19expressly provided for by law.
(a) Any request for proposal for selection of a
29corporation shall require the winning
30bidder to adopt or amend its bylaws to include provisions governing
31the election and qualification of directors, the establishment and
32functions of loan committees of the corporation, and the method
33of selecting the representative of the corporation on the board.
34(b) The bylaws shall provide for removal of officers only by a
35two-thirds vote of the directors of the corporation.
Each corporation shall have provisions establishing a
37grievance procedure for employees, clients, or potential clients,
38to appeal a decision or obtain redress of an action done by the staff
39or loan committee of the corporation. The procedures shall be
P9 1established in writing during the probationary period of a new
begin delete executive directorend delete may authorize
4the establishment of a new corporation using a request for proposal
The Nonprofit Public Benefit Corporation Law (Part
72 (commencing with Section 5110) of Division 2 of this title)
8applies to corporations formed under this chapter, except as to
9matters otherwise provided for in this chapter.
For six months following the establishment of a
11corporation, commencing upon filing of the articles of
12incorporation with the Secretary of State, a corporation shall be
13on probation. While on probation, a corporation may be suspended
14if suspension is recommended by the
begin delete executive directorend delete. This suspension is nonappealable and not subject to the
16procedures for suspension applicable to a corporation not on
The corporate powers of a corporation shall be exercised
22by the board of directors.
A request for proposal for selection of a corporation
24shall require the winning bidder to adopt or amend its bylaws to
26(a) A person may not serve on a board of directors who is not
27a resident of, or person conducting business in, the service area
28described in the articles of incorporation.
29(b) Each board of directors shall include representatives from
30all of the following:
31(1) The financial community.
32(2) The business community.
33(3) The economically disadvantaged.
34(c) Not more than one employee of the corporation may serve
35on the board of directors at any one time.
36(d) A person who has a financial interest related to a matter over
37which the board has authority may not make, participate in making,
38or in any way attempt to influence that matter.
If any director ceases to meet the qualifications
40established in Section 14014, he or she shall immediately vacate
P10 1his or her position as a director and such position shall be deemed
If any vacancy occurs in the elective membership of
4the board of directors through death, resignation, or otherwise, the
5remaining directors shall elect a person representing the appropriate
6category to fill the vacancy for the unexpired term.
begin delete officeend delete shall establish new small business financial
9development corporations pursuant to the procedures otherwise
10established by this
begin delete chapter in the following areas:end delete
18(1) San Jose.
19(2) Santa Ana.
20(3) San Fernando Valley.
23 Upon an appropriation in the annual Budget Act for this
begin delete office shallend delete establish a small business financial development
27corporation in southeast Los Angeles.
29 In furtherance of the purposes of this chapter, up to one-half
30of the trust funds may be used to guarantee loans utilized to
31establish a Business and Industrial Development Corporation
32(BIDCO) under Division 15 (commencing with Section 31000)
33of the Financial Code.
Every corporation shall provide for, and maintain a
38central staff to perform, all administrative requirements of the
39corporation, including all those functions required of a corporation
40by the director.
Reasonable costs incurred by a corporation in the
2creation and maintenance of a central staff shall be paid to the
3corporation from state funds, including a portion of the interest
4earned on the expansion fund and the corporation’s trust fund
5account, if the corporation has a trust fund account, otherwise, on
6the expansion fund.
A corporation shall report to the
begin delete executive director,end delete
8 or his or her designated representative, all
9statistical and other reports required by this chapter, responses to
10audit reports, budget requirements, and other information relating
11to the establishment, monitoring, and suspension of a corporation.
A corporation shall make a report to the
begin delete executive as of the close of business on June 30
14of each year, describing the corporation’s activities and any
15additional information requested by the
begin delete executive director,end delete on or before August 1 of each year.
It shall be unlawful for the
begin delete director,end delete executive director,
21 or any person who is an officer, director, or
22employee of a corporation, or who is a member of a loan
23committee, or who is an employee of the
begin delete officeend delete to do any of the
26(a) Ask for,
consent, or agree to receive, any commission,
27emolument, gratuity, money, property, or thing of value for his or
28her own use, benefit, or personal advantage, for procuring or
29endeavoring to procure for any person, partnership, joint venture,
30association, or corporation, any loan, guarantee, financial, or other
31assistance from any corporation.
32(b) Borrow money, property, or to benefit knowingly, directly
33or indirectly, from the use of the money, credit, or property of any
35(c) Make, maintain, or attempt to make or maintain, a deposit
36of the funds of a corporation with any other corporation or
37association on condition, or with the understanding, expressed or
38implied, that the corporation or association receiving the deposit
39shall pay any money or make a loan or advance, directly or
40indirectly, to any person, partnership, joint venture, association,
P12 1or corporation, other than to a corporation formed under this
It shall be unlawful for the
begin delete director,end delete executive director,
4 or any person who is an officer or director of
5a corporation, or who is an employee of the
begin delete office,end delete to purchase or
7receive, or to be otherwise interested in the purchase or receipt,
8directly or indirectly, of any asset of a corporation, without paying
9to the corporation the fair market value of the asset at the time of
10 the transaction.
Violation of any provision of this article shall constitute
Title 25 (commencing with Section 200000) is added
14to the Government Code, to read:
This title shall be known and may be cited as the Small
22Business Financial Assistance Act of 2013.
The Legislature finds that:
24(a) Small businesses form the core of the California economy
25and that it is in the interest of the state to increase opportunities
26for entrepreneurs, the self-employed, and microbusiness and small
27business owners to have better access to capital and other technical
29(b) Unemployment in California is a matter of statewide concern
30requiring concerted public and private action to develop
31employment opportunities for the disadvantaged, youth, veterans,
32and unemployed persons.
33(c) It is necessary to direct additional
34management assistance, business education, and other resources
35to encourage the development of small business opportunities,
36particularly for minority, women, and disabled persons, to alleviate
Unless the context otherwise requires, the definitions
4in this section shall govern the construction of this title.
5(a) “Corporation” means any nonprofit California small business
6financial development corporation created pursuant to Chapter 1
7(commencing with Section 14000) of Part 5 of Division 3 of Title
81 of the Corporations Code.
9(b) “Director” means the director of the Governor’s Office of
10Business and Economic Development.
11(c) “Employment incentive loan” means a loan to a qualified
12business or to a business located within an enterprise zone, as
13defined in subdivision (d) of Section 7072.
14(d) “Executive director” means the person designated to this
15title by the director of the Governor’s Office of Business and
17(e) “Expansion fund” or “expansion fund” means the California
18Small Business Expansion Fund.
19(f) “Financial company” means banking organizations, including
20national banks and trust companies, savings and loan associations,
21state insurance companies, mutual insurance companies, and other
22public and private banking, lending, retirement, and insurance
24(g) “Financial institution” means banking organizations,
25including national banks and trust companies authorized to conduct
26business in California and state-chartered commercial banks, trust
27companies, community development financial institutions,
28microlenders, and savings and loan associations.
29(h) “Loan committee” means a committee appointed by the
30board of directors of a corporation to determine the course of action
31on a loan application pursuant to this title.
32(i) “Office” means the Governor’s Office of Business and
34(j) Unless otherwise defined by the director by regulation, “small
35business loan” means a loan to a business defined as an eligible
36small business as set forth in Section 121.3-10 of Part 121 of
37Chapter 1 of Title 13 of the Code of Federal Regulations, including
38those businesses organized for agricultural purposes that create or
39retain employment as a result of the loan. From time to time, the
40director shall provide guidelines as to the preferred ratio of jobs
P14 1created or retained to total funds borrowed for guidance to the
3(k) “Trust fund” means the money from the expansion fund that
4is held in trust by a financial institution or financial company. A
5trust fund is not a deposit of state funds and is not subject to the
6requirements of Section 16506.
7(l) “Trust fund account” means an account within the trust fund
8that is allocated to a particular small business financial
9development corporation for the purpose of paying loan defaults
10and claims on bond guarantees for a specific small business
11financial development corporation.
12(m) “Trustee” means the lending institution or financial company
13selected by the office to hold and invest the trust funds. An
14 agreement made pursuant to this title and the trustee shall not be
15construed to be a deposit of state funds.
(a) There is within the Governor’s Office of Business
20and Economic Development the California Business Investment
21Service, which shall, among other things, assist businesses seeking
22new capital resources.
23(b) Pursuant to this title, the office may establish one or more
24programs administered regionally under contract with small
25business financial development corporations. Programs established
26pursuant to this title may include the following types of financial
28(1) Loan guarantees.
29(2) Direct loans.
30(3) Disaster assistance loans.
31(4) Surety bond guarantees.
32(c) In all of their state-funded programs, the corporations shall,
33to the extent practicable, be complementary to, and not competitive
34with, commercial lenders and other state and federal programs.
To implement its responsibilities, a corporation shall
36undertake a program that shall include, but not be limited to, the
38(a) Outreach to low-resource small businesses and
39microbusinesses. The corporations located in rural areas shall give
P15 1priority to low-resource farmers, rural, and agriculturally related
3(b) Collaboration with other organizations and lenders to identify
4and assist those businesses that are creditworthy but face
5impediments to accessing conventional sources because of reasons,
6such as low equity, inadequate collateral, unacceptable legal
7structure (such as a co-op or nonprofit organization), management
8inadequacies, and language problems.
9(c) To the extent possible, bringing all possible financial
10resources (low-interest lenders, BIDCOs, MESBICs, other
11guarantors, etc.) to bear on the borrower’s problems.
12(d) Technical assistance to businesses receiving loans or
13guarantees that will maximize the probability of loan repayment.
14(e) Ongoing strategies for increasing program resources through
15private sector involvement and nonstate funds.
16(f) A program for collecting and liquidating defaulted loans so
17that the corporations can qualify to become full-service lenders
18under the Small Business Administration. Corporations located in
19rural areas shall, in addition, try to qualify for lender status under
20the Farmers Home Administration.
21(g) Become an agent for other lenders and guarantors.
If regulations have not already been adopted under
26Chapter 1 (commencing with Section 14000) of Part 5 of Division
273 of Title 1 of the Corporations Code, as that chapter read on
28January 1, 2013, then the office shall adopt regulations concerning
29the implementation of this title, Chapter 1 (commencing with
30Section 14000) of Part 5 of Division 3 of Title 1 of the
31Corporations Code, and direct lending as emergency regulations
32in accordance with Chapter 3.5 (commencing with Section 11340)
33of Part 1 of Division 3 of Title 2. The adoption of these regulations
34is an emergency and necessary for the immediate preservation of
35the public peace, health and safety, or general welfare within the
36meaning of subdivision (b) of Section 11346.1. Notwithstanding
37subdivision (e) of Section 11346.1, the regulations shall not remain
38in effect for more than 180 days unless the office complies with
39all provisions of Chapter 3.5 (commencing with Section 11340)
40of Part 1 of Division 3 of Title 2, as required by subdivision (e) of
P16 1Section 11346.1. This section also applies to any direct loan
2program administered by the office.
The executive director shall do all of the following:
4(a) Administer this title.
5(b) Contract for services under this title and Chapter 1
6(commencing with Section 14000) of Part 5 of Division 3 of Title
71 of the Corporations Code.
8(c) In accordance with available resources, use branch offices
9for the purposes of making the programs under this title accessible
10to all areas of the state.
11(d) Require each corporation to submit an annual written plan
13(e) Authorize the distribution, transfer, and withholding of
14moneys in the expansion fund and trust funds.
15(f) Authorize the investment of expansion and trust fund moneys.
16(g) Oversee the operations of one or more programs authorized
17pursuant to this title.
18(h) Approve, suspend, or terminate a corporation’s ability to
19participate in a program under this title.
20(i) Advise the Governor, the director, and the Small Business
21Advocate regarding issues and programs affecting California’s
22small business community, including, but not limited to, business
23innovation and expansion, export financing, state procurement,
24management and technical assistance, venture capital, and financial
The use of state funds paid out to the trust fund and
27the return on those funds from investment pursuant to Section
28200014 is conditional pursuant to Sections 200008 and 200015.
29Each corporation shall enter into a written signed agreement with
30the state at the beginning of each fiscal year. The agreement shall
31govern the activities in which the corporations engage, the
32investment of state funds and its return, and the budgeted
33administrative expenses the corporations may incur. In the event
34the state and corporation do not reach an agreement, or the state
35finds the corporation has violated the terms of an active agreement,
36the state may take any action under Section 200008 or 200015, or
37any other action as appropriate. In the event the state and
38corporation do not reach agreement or the state finds the
39corporation has violated the terms of an active agreement, the
40corporation shall have no authority to withdraw or encumber the
P17 1trust fund or the return of those funds by the issuance of guarantees,
2by incurring expenses against the fund and its return in any manner
3whatsoever, and the state may take any action under Section
4200008 or 200015, or any other action as appropriate. Any
5guarantee or other encumbrance made by the corporation in
6violation of this section shall be null and void, and neither the state
7nor the trust fund will be liable therefor.
(a) Upon a finding by the executive director that
9irreparable harm may occur if guarantee or direct loan authority
10is not temporarily withdrawn from a corporation, the executive
11director may temporarily withdraw guarantee or direct loan, or
12both, authority from a corporation. The notice of temporary
13withdrawal sent to the corporation shall specify the reasons for the
15(1) As used in this section, “guarantee and direct loan authority”
16means the authority to make or guarantee any loan that encumbers
17funds in a trust fund account, any account or subaccount under the
18direct control of the office or other state entity, or the expansion
20(2) The executive director shall make one of the determinations
21specified in subdivision (c) within 30 days of the effective date of
22the temporary withdrawal, unless the corporation and the executive
23director mutually agree to an extension. The corporation shall have
24the opportunity to submit written material to the executive director
25addressing the items stated in the temporary withdrawal notice. If
26the executive director does not make any determinations within
2730 days, the temporary withdrawal shall be negated. The
28corporation’s yearly contract shall remain in effect during the
29period of temporary withdrawal, and the corporation shall continue
30to receive reimbursement of necessary operating expenses.
31(b) Failure of a corporation to substantially comply with the
32following may result in the suspension of a corporation:
33(1) Regulations implementing the California Small Business
34Development Corporation Law (Chapter 1 (commencing with
35Section 14000) of Part 5 of Division 3 of Title 1 of the
37(2) Fiscal and portfolio requirements, as contained in the fiscal
38and portfolio audits specified in Section 14004 of the Corporations
P18 1(3) Milestones and scope of work as contained in the annual
2contract between the corporation and the office.
3(c) Pursuant to subdivision (a) or (b), the executive director may
4do the following:
5(1) Terminate the temporary withdrawal.
6(2) Terminate the temporary withdrawal subject to the
7corporation’s adoption of a specified remedial action plan.
8(3) Temporarily withdraw, or continue to withdraw, guarantee
9authority until a specified time. This determination by the executive
10director shall require a finding that the corporation has failed to
11comply with the California Small Business Development
12Corporation Law (Chapter 1 (commencing with Section 14000)
13of Part 5 of Division 3 of Title 1 of the Corporations Code).
14(4) Suspend the corporation.
15(5) Suspend the corporation, with suspension stayed until the
16corporation provides a remedial action plan to the executive
17director, and the executive director decides whether to repeal or
18implement the stayed suspension.
19(d) The determinations contained in paragraphs (4) and (5) of
20subdivision (c) require a finding that irreparable harm will occur
21unless the corporation is suspended.
22(e) In considering a determination regarding the recommended
23suspension and possible remedial action plans, the executive
24director shall consider, along with other criteria as specified in
25subdivision (b), the corporation’s history and past performance.
26(f) Upon suspension of a corporation, the executive director
27shall transfer all funds, whether encumbered or not, in the trust
28fund account of the suspended corporation into either the expansion
29fund or temporarily transfer the funds to another corporation.
30(g) If the executive director decides to take any action against
31the corporation pursuant to paragraphs (2) to (5), inclusive, of
32subdivision (c), the corporation shall be notified of the action 10
33days before the effective date of the action. The corporation shall
34have the right to appeal the executive director’s decision to the
35director within that 10-day period by sending notice to the director.
36Once the director receives notice that the action is being appealed,
37the executive director’s action shall be stayed except for temporary
38withdrawal of guarantee authority. Upon receipt of the notice, the
39director shall consider and make a final determination on the appeal
40within 30 days. The director may elect to take any of the actions
P19 1listed in subdivision (h). The temporary withdrawal of corporation
2guarantee authority shall remain in effect until the director issues
4(h) Pursuant to subdivision (g), the director may do any of the
6(1) Terminate the action taken by the executive director.
7(2) Modify the action taken by the executive director subject to
8the adoption by the corporation of a specified remedial action plan.
9(3) Affirm the action taken by the executive director.
10(i) Following suspension, the corporation may continue its
11existence as a nonprofit corporation pursuant to the Nonprofit
12Public Benefit Corporation Law (Part 2 (commencing with Section
135110) of Division 2 of Title 1 of the Corporations Code), but shall
14no longer be registered with the Secretary of State as a small
15business financial development corporation. A corporation shall
16not enjoy any of the benefits of a small business financial
17development corporation following suspension.
18(j) The funds in the trust fund account of a corporation under
19temporary withdrawal shall be transferred to the expansion fund.
20Upon termination of the temporary withdrawal, unless the
21termination is caused by suspension, the funds of the corporation
22that were transferred to the expansion fund from the trust fund
23account shall be returned to the corporation’s trust fund account,
24notwithstanding Section 200011. While the funds of a corporation’s
25trust fund account reside in the expansion fund, use of the principal
26on the funds shall be governed by the implementing regulations
27specifying use of funds in the expansion fund. Interest on the funds
28moved from a corporation’s trust fund account upon temporary
29withdrawal shall be limited to payment of the corporation’s
30administrative expenses, as contained in the contract between the
31corporation and the state pursuant to this title.
(a) There is hereby continued in existence in the State
36Treasury the California Small Business Expansion Fund. All or a
37portion of the funds in the expansion fund may be paid out, with
38the approval of the Department of Finance, to a lending institution
39or financial company that will act as trustee of the funds.
P20 1(b) The expansion fund and the trust fund shall be used to pay
2for defaulted loan guarantees issued pursuant to this title, surety
3bond losses, administrative costs of corporations, and those costs
4necessary to protect a real property interest in a defaulted loan or
6(c) The expansion fund and
trust fund are created solely for the
7purpose of receiving state, federal, or local government money,
8and other public or private money to make loans, guarantees, and
9restricted investments pursuant to this title.
10(d) One or more accounts may be created by the executive
11director for corporations participating in one or more programs
12authorized under this title. Each account is a legally separate
13account, and shall not be used to satisfy loan or surety bond
14guarantees or other obligations of another corporation.
15(e) The amount of guarantee liability outstanding at any one
16time shall not exceed five times the amount of funds on deposit in
17the expansion fund plus any receivables due from funds loaned
18from the expansion fund to another fund in state government as
19directed by the Department of Finance pursuant to a statute enacted
20by the Legislature, including each of the trust fund accounts within
21the trust fund.
22(f) This section shall remain in effect only until January 1, 2018,
23and as of that date is repealed, unless a later enacted statute, that
24is enacted before January 1, 2018, deletes or extends that date.
(a) All money deposited in the expansion fund is
26hereby continuously appropriated, without regard to fiscal years,
27for the purposes of this title.
28(b) Except as specified in subdivision (a) of Section 200011,
29the state shall not be liable or obligated in any way beyond the
30state money that is allocated in the expansion fund from moneys
31from the General Fund moneys appropriated for such purposes.
(a) The executive director at his or her discretion,
33with the approval of the Director of Finance, may request the
34trustee to invest those funds in the trust fund in any of the securities
35described in Section 16430. Returns from these investments shall
36be deposited in the expansion fund and shall be used to support
37the programs of this title.
38(b) Any investments made in securities described in Section
3916430 shall be governed by the statement of investment policy
P21 1prepared by the Treasurer pursuant to subdivision (a) of Section
(a) The state shall not be liable or obligated in any
4way beyond the money that is allocated and deposited in the
5corporation’s trust fund account.
6(b) The executive director may reallocate funds held within a
7corporation’s trust fund account.
8(1) The executive director shall reallocate funds based on which
9corporation is most effectively using its guarantee funds. If funds
10are withdrawn from a less effective corporation as part of a
11reallocation, the executive director shall make that withdrawal
12only after giving consideration to that corporation’s fiscal solvency,
13its ability to honor loan guarantee defaults, and its ability to
14maintain a viable presence within the region it serves. Reallocation
15of funds shall occur no more frequently than once per fiscal year.
16Any decision made by the executive director pursuant to this
17subdivision may be appealed to the director. The director has
18authority to repeal or modify any decision to reallocate funds.
19(2) The executive director may authorize a corporation to exceed
20the leverage ratio specified in Section 200009 or subdivision (a)
21of Section 200025, or subdivision (c) of Section 14017 of the
22Corporations Code, pending the annual reallocation of funds
23pursuant to this section. However, no corporation shall be permitted
24to exceed an outstanding guarantee liability of more than five times
25its portion of funds on deposit in the expansion fund.
(a) There is hereby created in the State Treasury the
27Small Business Disaster Recovery Loan Loss Reserve Account,
28as part of the expansion fund. This account shall be used to pay
29for unrecovered losses resulting from loan guarantees issued
30pursuant to subdivision (a) of Section 200030 or subdivision (b)
31of this section, and disaster loan guarantees issued prior to the
32effective date of this section that are in default.
33(b) Any lending institution that issues a low-interest loan that
34is guaranteed by resources in this account shall be fully reimbursed
35for the guaranteed portion of principal and interest that result from
36a loan or loans that are in default. If there are insufficient funds in
37this account to fully satisfy all claimants, the full faith of the
38resources in the General Fund are pledged to satisfy the obligations
39of this account. This account may only guarantee as much loan
40dollar value as is specifically authorized by the Director of Finance
P22 1with the concurrence of the Governor. This account shall receive
2all moneys transferred pursuant to Section 200013, and any
3unencumbered balances transferred to the California Small
4Business Expansion Fund pursuant to Chapters 11 and 12 of the
5First Extraordinary Session of the Statutes of 1989, and Chapter
61525 of the Statutes of 1990, as of July 1, 1992.
7(c) The Governor may utilize this authority to prevent business
8insolvencies and loss of employment in an area affected by a state
9of emergency within the state and declared a disaster by the
10President of the United States, by the Administrator of the United
11States Small Business Administration, or by the United States
12Secretary of Agriculture, or declared to be in a state of emergency
13by the Governor of California.
The Director of Finance, with the approval of the
15Governor, may transfer moneys in the Special Fund for Economic
16Uncertainties to the California Small Business Expansion Fund
17for use as authorized by the director, in an amount necessary to
18make loan guarantees pursuant to this title.
(a) The funds in the expansion fund shall be paid out
20to trust fund accounts by the Treasurer on warrants drawn by the
21Controller and requisitioned by the executive director, pursuant
22to the purposes of this title. The executive director may transfer
23funds allocated from the expansion fund to accounts, established
24solely to receive the funds, in lending institutions designated by
25the office to act as trustee. The lending institutions so designated
26shall be approved by the state for the receipt of state deposits.
27Interest earned on the trust fund accounts in lending institutions
28may be utilized by the corporations pursuant to the purposes of
30(b) Except as specified in subdivision (d), the executive director
31shall allocate and transfer money to trust fund accounts based on
32performance-based criteria. The criteria shall include, but not be
33limited to, the following:
34(1) The default record of the corporation.
35(2) The number and amount of loans guaranteed by a
37(3) The number and amount of loans made by a corporation if
38state funds were used to make those loans.
39(4) The number and amount of surety bonds guaranteed by a
P23 1(c) Any decision made by the executive director pursuant to
2subdivision (b) may be appealed to the director within 15 days of
3notice of the proposed action. The director may repeal or modify
4any reallocation and transfer decisions made by the executive
6(d) The criteria specified in subdivision (b) shall not apply to a
7corporation that has been in existence for five years or less. If not
8already adopted, the office shall develop regulations specifying
9the basis for transferring account funds to those corporations that
10have been in existence for five years or less.
Pursuant to this section and any regulations adopted
12pursuant to this title, the state has residual interest in the funds
13deposited by the state to a trust fund account and to the return on
14these funds from investments. On dissolution or suspension of the
15corporation, these funds shall be withdrawn by the executive
16director from the trust fund account and returned to the expansion
17fund or temporarily transferred to another trust fund account. This
18provision shall be contained in the trust instructions to the trustee.
Each trust fund account shall consist of a loan
20guarantee account, and, upon recommendation by the executive
21director, a bond guarantee account, each of which is a legally
22separate account, and the assets of one account shall not be used
23to satisfy loan guarantees or other obligations of another
24corporation. Not more than one-third of a trust fund account shall
25be allocated to a bond guarantee account. A corporation shall not
26use trust fund accounts to secure a corporate indebtedness. State
27funds deposited in the trust fund accounts, with the exception of
28guarantees established pursuant to this title, shall not be subject
29to liens or encumbrances of the corporation or its creditors.
(a) The financial institution that is to act as trustee of
31the trust fund shall be designated after review by the executive
32director. The corporation shall not receive money on deposit to
33support guarantees issued under this title without the approval of
34the executive director.
35(b) State funds may not be used to finance an expense incurred
36by a corporation in a location not approved pursuant to a statewide
37plan. The prohibition against use of state funds also applies to the
38location of satellite offices, and the area served from a corporation
(a) The Small Business Loan Guarantee Program,
4which is hereby continued in existence, shall provide guarantees
5to loans offered by financial institutions to small businesses.
6(b) The Legislature finds and declares that the Small Business
7Loan Guarantee Program has enabled participating small businesses
8that do not qualify for conventional business loans or Small
9Business Administration loans to secure funds to expand their
10businesses. These small businesses would not have been able to
11expand their businesses in the absence of the program. The program
12has also provided valuable technical assistance to small businesses
13to ensure growth and stability. The study commissioned by former
14Section 14069.6 of the Corporations Code, as added by Chapter
15919 of the Statutes of 1997, documented the return on investment
16of the program and the need for its services. The value of the
17program has also been recognized by the Governor through
18proposals contained in the May Revision to the Budget Act of
192000 for the 2000-01 fiscal year.
The executive director, following notification to the
21director, may do all of the following:
22(a) Contract for services entered into pursuant to this title.
23(b) Hold public hearings.
24(c) Act as liaison between corporations, other state and federal
25agencies, lenders, and the Legislature.
26(d) Process and tabulate on a monthly basis all corporate reports.
27(e) Attend board meetings.
28(f) Attend and participate at corporation meetings. The executive
29 director, or his or her designee, shall be an ex officio, nonvoting
30representative on the board of directors and loan committees of
31each corporation. The executive director shall meet with the board
32of directors of each corporation at least once each fiscal year.
33(g) Assist corporations in applying for public and private funding
34opportunities, and in obtaining program support from the business
(a) The executive director shall recommend whether
37the expansion fund and trust fund accounts are to be leveraged,
38and if so, by how much. Upon the request of the corporation, the
39executive director’s decision may be repealed or modified by an
P25 1(b) The amount of guarantee liability outstanding at any one
2time shall not exceed five times the amount of funds on deposit in
3the expansion fund plus any receivables due from funds loaned
4from the expansion fund to another fund in state government as
5directed by the Department of Finance pursuant to a statute enacted
6by the Legislature, including each of the trust fund accounts within
7the trust fund.
8(c) This section shall remain in effect only until January 1, 2018,
9and as of that date is repealed, unless a later enacted statute, that
10is enacted before January 1, 2018, deletes or extends that date.
(a) The executive director shall recommend whether
12the expansion fund and trust fund accounts are to be leveraged,
13and if so, by how much. Upon the request of the corporation, the
14executive director’s decision may be repealed or modified by an
16(b) The amount of guarantee liability outstanding at any one
17time shall not exceed four times the amount of funds on deposit
18in the expansion fund plus any receivables due from funds loaned
19from the expansion fund to another fund in state government as
20directed by the Department of Finance pursuant to a statute enacted
21by the Legislature, including each of the trust fund accounts within
22the trust fund, unless the executive director has permitted a higher
23leverage ratio for an individual corporation pursuant to subdivision
24(b) of Section 200011.
25(c) This section shall become operative on January 1, 2018.
(a) The corporate guarantee shall be backed by funds
27on deposit in the corporation’s trust fund account, or by receivables
28due from funds loaned from the corporation’s trust fund account
29to another fund in state government, as directed by the Department
30of Finance pursuant to a statute enacted by the Legislature.
31(b) Loan guarantees shall be secured by a reserve of at least 20
32percent to be determined by the executive director.
33(c) The expansion fund and trust fund accounts shall be used
34exclusively to guarantee obligations and pay the administrative
35costs of the corporations.
36(d) This section shall remain in effect only until January 1, 2018,
37and as of that date is repealed, unless a later enacted statute, that
38is enacted before January 1, 2018, deletes or extends that date.
(a) The corporate guarantee shall be backed by funds
40on deposit in the corporation’s trust fund account, or by receivables
P26 1due from funds loaned from the corporation’s trust fund account
2to another fund in state government, as directed by the Department
3of Finance pursuant to a statute enacted by the Legislature.
4(b) Loan guarantees shall be secured by a reserve of at least 25
5percent to be determined by the executive director, unless the
6executive director authorizes a higher leverage ratio for an
7individual corporation pursuant to subdivision (b) of Section
9(c) The expansion fund and trust fund
accounts shall be used
10exclusively to guarantee obligations and pay the administrative
11costs of the corporations.
12(d) This section shall become operative on January 1, 2018.
A corporation may charge the borrower or financial
14institution a loan fee on all loans made or guaranteed by the
15corporation to defray the operating expenses of the corporation.
16The amount of the fee shall be determined by the executive
(a) It is the intent of the Legislature that the
19corporations make maximal use of their statutory authority to
20guarantee loans and surety bonds, including the authority to secure
21loans with a minimum loan loss reserve of only 20 percent, so that
22the financing needs of small business may be met as fully as
23possible within the limits of corporations’ loan loss reserves. The
24office shall report annually to the Legislature on the financial status
25of the corporations and their portfolio of loans and surety bonds
26guaranteed pursuant to Section 9795.
27(b) Any corporation that serves an area declared to be in a state
28of emergency by the Governor or a disaster area by the President
29of the United States, the Administrator of the United States Small
30 Business Administration, or the United States Secretary of
31Agriculture shall increase the portfolio of loan guarantees where
32the dollar amount of the loan is less than one hundred thousand
33dollars ($100,000), so that at least 15 percent of the dollar value
34of loans guaranteed by the corporation is for those loans. The
35corporation shall comply with this requirement within one year of
36the date the emergency or disaster is declared. Upon application
37of a corporation, the executive director may waive or modify the
38rule for the corporation if the corporation demonstrates that it made
39a good faith effort to comply and failed to locate lending
P27 1institutions in the region that the corporation serves that are willing
2to make guaranteed loans in that amount.
3(c) This section shall remain in effect only until January 1, 2018,
4and as of that date is repealed, unless a later enacted statute, that
5is enacted before January 1, 2018, deletes or extends that date.
(a) It is the intent of the Legislature that the
7corporations make maximal use of their statutory authority to
8guarantee loans and surety bonds, including the authority to secure
9loans with a minimum loan loss reserve of only 25 percent, unless
10the office authorizes a higher leverage ratio for an individual
11corporation pursuant to subdivision (b) of Section 200011, so that
12the financing needs of small business may be met as fully as
13possible within the limits of corporations’ loan loss reserves. The
14office shall report annually to the Legislature on the financial status
15of the corporations and their portfolio of loans and surety bonds
16guaranteed pursuant to Section 9795.
17(b) Any corporation that serves an area declared to be in a state
18of emergency by the Governor or a disaster area by the President
19of the United States, the Administrator of the United States Small
20Business Administration, or the United States Secretary of
21Agriculture shall increase the portfolio of loan guarantees where
22the dollar amount of the loan is less than one hundred thousand
23dollars ($100,000), so that at least 15 percent of the dollar value
24of loans guaranteed by the corporation is for those loans. The
25corporation shall comply with this requirement within one year of
26the date the emergency or disaster is declared. Upon application
27of a corporation, the executive director may waive or modify the
28rule for the corporation if the corporation demonstrates that it made
29a good faith effort to comply and failed to locate lending
30institutions in the region that the corporation serves that are willing
31to make guaranteed loans in that amount.
32(c) This section shall become operative on January 1, 2018.
(a) A corporation shall establish one or more loan
34committees, each of which shall be composed of five or more
35persons, a majority of whom shall be experienced in banking and
37(b) A loan committee shall review applications to the corporation
38for a loan or guarantee and shall do each of the following:
39(1) Determine the feasibility of the proposed transaction. The
40loan committee shall recommend approval of the application only
P28 1upon a determination that there is a reasonable chance that the loan
2will be repaid.
3(2) On the
basis of that determination, recommend to the board
4of directors any action that the loan committee deems appropriate
5under the circumstances, or, in the event that approval authority
6has been delegated to the loan committee by the board of directors,
7approve or disapprove the loan application.
8(c) A loan committee shall expeditiously act to accept or reject
10(d) A person who has a financial interest related to a matter over
11which the loan committee has authority may not make, participate
12in making, or in any way attempt to influence that matter.
Unless delegated to its loan committee, the
14corporation’s board of directors, upon a recommendation from its
15loan committee shall do all of the following:
16(a) Emphasize consideration to applications that will increase
17employment of disadvantaged, disabled, or unemployed persons,
18or increase employment of youth residing in areas of high youth
19unemployment and high youth delinquency.
20(b) Give consideration to applications from traditional and
21safety-net providers of Medi-Cal services that will promote access
22to quality medical care for individuals enrolled in Medi-Cal
23managed health care networks that are contracting with or owned
24or operated by a county board of supervisors, a county health
25 commission, or a county health authority organized pursuant to
26Section 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, or
2714087.9605 of the Welfare and Institutions Code.
28(c) Not grant a loan or guarantee, unless it determines that the
29conditions of Section 200033 are satisfied.
(a) Among other priorities, corporations shall give
31high priority to the issuance of loan guarantees to small business
32incubators, and to businesses that lease space in incubators.
33(b) For the purposes of this section, “incubator” means a facility
34that allows new small businesses to increase their probability of
35success by sharing needed capital equipment, services, and
36facilities, which may include, but is not limited to, the following:
37(1) Reception and meeting area.
38(2) Secretarial services, such as collating, telephone answering,
40(3) Accounting and bookkeeping services.
P29 1(4) Research libraries.
2(5) Onsite financial and management counseling.
4(7) Flexible lease arrangements for flexible space.
5(8) Computer or word processing facilities.
6(9) Day care facilities.
7(10) Office furniture rentals.
8(11) A graduation policy sometimes requiring firms to leave
9after three to five years in a subsidized, nurturing environment.
10(12) Employee training and placement services.
11(c) Among other priorities, corporations shall give high priority
12to marketing their services to Phase 1 or Phase 2 Small Business
13Innovation Research (SBIR) recipients and providing loan
14guarantees, whenever possible.
(a) A corporation may utilize funds for direct lending
19as long as at least 80 percent of the corporate funds, calculated by
20dollar amount, and all expansion funds are guaranteed by another
21public or private financial institution.
22(b) The amount of funds available for direct lending shall be
23determined by the executive director. In its capacity as a direct
24lender, the corporation may sell in the secondary market the
25guaranteed portion of each loan so as to raise additional funds for
26direct lending. The office shall issue regulations governing these
27direct loans, including the maximum amount of these loans.
28(c) To execute the direct loan programs established in this
29chapter, the executive director may loan trust funds to a corporation
30located in a rural area for the express purpose of lending those
31funds to an identified borrower. The loan authorized by the
32executive director to the corporation shall be on terms similar to
33the loan between the corporation and the borrower.
34(d) The amount of the loan may be in excess of the amount of
35a loan to any individual borrower, but actual disbursements
36pursuant to the office loan agreement shall be required to be
37supported by a loan agreement between the borrower and the
38corporation in an amount at least equal to the requested
39disbursement. The loan between the office and the corporation
40shall be evidenced by a credit agreement. In the event that any
P30 1loan between the corporation and borrower is not guaranteed by
2a governmental agency, the portion of the credit agreement
3attributable to that loan shall be secured by assignment of any note,
4executed in favor of the corporation by the borrower to the office.
5The terms and conditions of the credit agreement shall be similar
6to the loan agreement between the corporation and the borrower,
7which shall be collateralized by the note between the corporation
8and the borrower.
9(e) In the absence of fraud on the part of the corporation, the
10liability of the corporation to repay the loan to the office is limited
11to the repayment received by the corporation from the borrower,
12except in a case where the United States Department of Agriculture
13requires exposure by the corporation in rule or regulation. The
14corporation may use trust funds for loan repayment to the office
15if the corporation has exhausted a loan loss reserve created for this
16purpose. Interest and principal received by the office from the
17corporation shall be deposited into the same account from which
18the funds were originally borrowed.
19(f) Upon the approval of the executive director, a corporation
20shall be authorized to borrow trust funds from the office for the
21purpose of relending those funds to small businesses. A corporation
22shall demonstrate to the executive director that it has the capacity
23to administer a direct loan program, and has procedures in place
24to limit the default rate for loans to startup businesses. Not more
25than 25 percent of any trust fund account shall be used for the
26direct lending established pursuant to this subdivision. A loan to
27a corporation shall not exceed the amount of funds likely to be
28lent to small businesses within three months following the loan to
30(g) The maximum loan amount to a small business is fifty
31thousand dollars ($50,000). In the absence of fraud on the part of
32the corporation, the repayment obligation pursuant to the loan to
33the corporation shall be limited to the amount of funds received
34by the corporation for the loan to the small business and any other
35funds received from the office that are not disbursed. The
36corporation shall be authorized to charge a fee to the small business
37borrower, in an amount determined by the executive director
38pursuant to regulation. The program provided for in this subdivision
39shall be available in all geographic areas of the state.
(a) A corporation may, in an area affected by a state
4of emergency within the state and declared a disaster by the
5President of the United States, the Administrator of the United
6States Small Business Administration, or the United States
7Secretary of Agriculture, or declared to be in a state of emergency
8by the Governor of California, provide loan guarantees from funds
9allocated in Section 200013 to small businesses, small farms,
10nurseries, and agriculture-related enterprises that have suffered
11actual physical damage or significant economic injury as a result
12of the disaster.
13(b) If regulations have not otherwise been adopted, the office
14may adopt or readopt regulations to implement the loan guarantee
15program authorized by this section. The office may adopt these
16regulations as emergency regulations in accordance with Chapter
173.5 (commencing with Section 11340) of Part 1 of Division 3 of
18Title 2, and for purposes of that chapter, including Section 11349.6,
19the adoption of the regulations shall be considered by the Office
20of Administrative Law to be necessary for the immediate
21preservation of the public peace, health and safety, and general
22welfare. Notwithstanding subdivision (e) of Section 11346.1, the
23regulations shall be repealed within 180 days after their effective
24date unless the office complies with Chapter 3.5 (commencing
25with Section 11340) of Part 1 of Division 3 of Title 2, as provided
26in subdivision (e) of Section 11346.1.
27(c) Allocations pursuant to subdivision (a) shall be deemed to
28 be for extraordinary emergency or disaster response operations
29costs incurred by the office.
(a) Corporations may grant energy efficiency
35(b) The office shall enter into an agreement with the California
36Energy Extension Service of the Office of Planning and Research
37to assist small business owners in reducing their energy costs
38through low-interest loans and by providing assistance and
In furtherance of the purposes set forth in Section
4200001 of this code and Section 14002 of the Corporations Code,
5a corporation may do any one or more of the following activities,
6but only to the extent that the activities are authorized pursuant to
7the contract between the office and corporation: guarantee, endorse,
8or act as surety on the bonds, notes, contracts, or other obligations
9of, or assist financially, any person, firm, corporation, or
10association, and may establish and regulate the terms and
11conditions with respect to any such loans or financial assistance
12and the charges for interest and service connected therewith, except
13that the corporation shall not make or guarantee any loan, unless
14and until it determines:
15(a) There is no probability that the loan or other financial
16assistance would be granted by a financial company under
17reasonable terms or conditions, and the borrower has demonstrated
18a reasonable prospect of repayment of the loan.
19(b) The loan proceeds shall be used exclusively in this state.
20(c) The loan qualifies as a small business loan or an employment
22(d) That the borrower has a minimum equity interest in the
23business as determined by the director.
24(e) As a result of the loan, the jobs generated or retained
25demonstrate reasonable conformance to the regulations specifying
(a) In addition to the authority granted by Section
28200033, upon approval of the executive director, a corporation
29may act as guarantor on a surety bond for any small business
30contractor, including, but not limited to, women, minority, and
31disabled veteran contractors.
32(b) The provisions of subdivision (a) allowing a corporation to
33act as a guarantor on surety bonds may be funded through
34appropriate federal funding sources. Federal funds shall be
35deposited in the Federal Trust Fund in the State Treasury in
36accordance with Section 16360, for transfer to the expansion fund.
(a) Except as otherwise provided in this title, the trust
4fund account shall be used solely to make loans, guarantee bonds,
5and guarantee loans, approved by the corporation, that meet the
6loan criteria under this title. The state shall not be liable or
7obligated in any way as a result of the allocation of state money
8to a trust fund account beyond the state money that is allocated
9and deposited in the fund pursuant to this title, and that is not
10otherwise withdrawn by the state pursuant to this title.
11(b) A summary of all loans and bonds to which a state guarantee
12is attached shall be submitted to the executive director upon
13execution of the loan agreement and periodically thereafter.
14(c) A summary of all loans made by a corporation shall be
15submitted to the executive director upon execution of the loan
16agreement and periodically thereafter.
(a) Annually, not later than January 1 of each year
18commencing January 1, 2014, the executive director shall prepare
19a report regarding the loss experience for the expansion fund for
20loan guarantees, loss reserves, and surety bond guarantees for the
21preceding fiscal year. At a minimum, the report shall also include
22data regarding numbers of surety bond and loan guarantees awarded
23through the expansion fund, including ethnicity and gender data
24of participating contractors and other entities, and experience of
25surety insurer participants in the bond guarantee program. The
26report shall include the information described in Section 200025.
27The executive director shall submit that report to the Governor
28and the Legislature pursuant to Section 9795.
29(b) A corporation shall also report to the executive director, or
30his or her designated representative, all statistical and other reports
31required by this title, responses to audit reports, budget
32requirements, invoices submitted for payment by the state, and
33information concerning loans made or guaranteed.
Pursuant to subdivision (f) of Section 8684.2, within
3560 days of the conclusion of the period for guaranteeing loans
36under any small business disaster loan guarantee program
37conducted for a disaster as authorized by Section 8684.2 or 200030,
38the office shall provide a report to the Legislature on loan
39guarantees approved and rejected by gender, ethnic group, type of
40business and location, and each participating loan institution
P34 1pursuant to Section 9795. The office need only submit one report
2to comply with this section and subdivision (f) of Section 8684.2.
No reimbursement is required by this act pursuant to
18Section 6 of Article XIII B of the California Constitution because
19the only costs that may be incurred by a local agency or school
20district will be incurred because this act creates a new crime or
21infraction, eliminates a crime or infraction, or changes the penalty
22for a crime or infraction, within the meaning of Section 17556 of
23the Government Code, or changes the definition of a crime within
24the meaning of Section 6 of Article XIII B of the California