BILL ANALYSIS Ó
AB 1537
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
1537 (Committee on Jobs, Economic Development, and the Economy)
As Amended June 25, 2015
2/3 vote
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|ASSEMBLY: | 77-0 | (May 18, |SENATE: | 39-0 | (July 9, 2015) |
| | |2015) | | | |
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Original Committee Reference: J., E.D., & E.
SUMMARY: Expands the type of financial assistance information
being reported annually on the activities of Small Business
Finance Center. This bill requires aggregate level geographic
information on the businesses being served. As these financial
services are designed to serve small businesses throughout the
state, this type of information is important to the
Legislature's oversight of the Small Business Finance Center
programs.
The Senate amendments are technical and nonsubstantive.
EXISTING LAW:
1)Establishes the Small Business Finance Center within the
California Infrastructure and Economic Development Bank for
AB 1537
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the purpose of assisting businesses seeking capital not
otherwise available in the private markets including:
a) Loan guarantees and other credit enhancements;
b) Direct loans and other debt instruments;
c) Disaster loan guarantees; and
d) Surety bond guarantees.
2)Requires the Small Business Finance Center to prepare an
annual report on their financial activities.
FISCAL EFFECT: According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: The Small Business Finance Center is authorized to
offer a range of financial assistance including direct loans and
credit enhancements. One of the largest programs is the Small
Business Loan Guarantee Program, which is locally administered
through a network of small business financial development
corporations (FDCs).
As initially implemented, FDCs were selected, in part, on their
demonstrated ability to serve specific geographic regions. Over
the years, these state approved regions have evolved. Today,
some FDCs serve small businesses across the state, while others
work within larger and sometimes overlapping geographic areas.
This change in program delivery necessitates a change in
reporting. This bill expands the annual report to include the
general geographic location (by city and county) of businesses
served during the report period.
The policy committee analysis includes additional information on
the Small Business Finance Center and the $84 million in federal
funding it is currently in the process of deploying.
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Analysis Prepared by:
Toni Symonds / J., E.D., & E. / (916) 319-2090
FN:
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