California Assembly Bill AB1298 Introduced / Bill

 BILL NUMBER: AB 1298INTRODUCED 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.