BILL ANALYSIS
AB 1632
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1632 (Budget Committee)
As Amended October 6, 2010
2/3 vote. Urgency
-----------------------------------------------------------------
|ASSEMBLY: | |(April 22, |SENATE: |36-0 |(October 7, |
| | |2010) | | |2010) |
-----------------------------------------------------------------
(vote not relevant)
Original Committee Reference: BUDGET
SUMMARY : Appropriates $32 million from the General Fund for the
purposes of promoting economic development throughout the state.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Appropriate $20 million for the existing Small Business Loan
Guarantee Program at the Business Transportation and Housing
Agency (BTH). Program augmentation nearly doubles program
volume and leverages $100 million in bank loans and/or lines
of credit and will serve 1,000 businesses.
2)Appropriate $6 million The California Capital Access Program
(CalCAP) at the State Treasurer's office encourages banks and
other financial institutions to make loans to small businesses
that fall just outside of most banks' conventional
underwriting standards by providing loan portfolio insurance
which may provide up to 100% coverage on certain loan
defaults. By participating in CalCAP, lenders have available
to them a proven financing mechanism to meet the financing
needs of California's small businesses. This augmentation
would triple the current size of the program and would
leverage over $135 million in loans. Intended to serve 1,000
businesses.
3)Appropriate $6 million for Small Business Development Centers.
This Augmentation will leverage an equal federal match, which
funds free technical assistance and business counseling
sessions to over 50,000 businesses.
4)Appropriate $350,000 to the BTH for participating entities in
AB 1632
Page 2
the Federal Technology Center Program which leverages equal
federal match to fund free small business workshops on
competing for government contracts. Augmentation is
anticipated to provide services to 2,000 businesses.
5)State legislative intent that the California Pollution Control
Financing Authority at the State Treasurer's Office may adjust
regulations to allow for their participation in federally
funded small business loan programs.
6)Urgency Clause. Declare this bill take effect immediately as
an urgency statute.
AS PASSED BY THE ASSEMBLY , this bill was a vehicle for 2010
Budget legislation.
Analysis Prepared by : Keali'i Bright / BUDGET / (916) 319-2099
FN: 0007227