BILL NUMBER: AB 1298	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gipson

                        FEBRUARY 27, 2015

   An act to amend Section 63088.6 of the Government Code, relating
to economic development.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 63088.6 of the Government Code is amended to
read:
   63088.6.  To implement its responsibilities, a corporation shall
undertake program activities that shall include, but not be limited
to,  all of  the following:
   (a) Outreach to low-resource small businesses and microbusinesses.
The corporations located in rural areas shall give priority to
low-resource farmers and rural and agriculturally related businesses.

   (b) Collaboration with other organizations and lenders to identify
and assist  those  businesses that are creditworthy
but face impediments to accessing conventional sources because of
reasons, such as low equity, inadequate collateral, unacceptable
legal structure  (such   , such  as a co-op
or nonprofit  organization),   organization,
 management inadequacies, and language problems.
   (c) To the extent possible, bringing all possible financial
resources to bear on the borrower's problems, including, but not
limited to, low-interest lenders, business and industrial development
corporations (BIDCOs), minority enterprise small business investment
companies (MESBICs), and other financial institutions, financial
companies, and grantors.
   (d) Technical assistance to businesses receiving loans or
guarantees that will maximize the probability of loan repayment.
   (e) Ongoing strategies for increasing program resources through
private sector involvement and nonstate funds.
   (f) A program for collecting and liquidating defaulted loans so
that the corporations can qualify to become full-service lenders
under the Small Business Administration. Corporations located in
rural areas shall, in addition, try to qualify for lender status
under the United States Department of Agriculture's Rural Development
and Farm Services Agency.
   (g) Become an agent for other financial institutions and financial
companies.
   (h) Become an agent for other state or federal governmental
agencies that need a qualified financial service provider, including,
but not limited to, the State Energy Resources Conservation and
Development Commission.