California Assembly Bill AB1266

California 2017-2018 Regular Session

• Introduced: 2/17/17
• Refer: 3/30/17
• Report Pass: 3/30/17
• Refer: 4/3/17
• Failed: 2/1/18

Caption

State Enterprise Loan Fund.

Impact

The implications of AB 1266 on state laws include the amendment of existing financial regulations concerning state funding mechanisms for small enterprises. By increasing the transfer limits, the bill facilitates a more robust support structure for small businesses, encouraging entrepreneurship and economic growth within the state. It is poised to address the financial challenges small businesses face, particularly when seeking funding for expansion or operational needs. This change could positively impact the economic landscape by promoting stability and growth in small enterprise sectors across California.

Summary

Assembly Bill 1266, introduced by Assembly Member Burke, is designed to amend provisions concerning the State Enterprise Loan Fund as established by the State Assistance Fund for Enterprise Act of 1989. The bill seeks to increase the amount that can be transferred from the Energy Resources Program Account to the Loan Fund, raising the limit from $1,000,000 to $5,000,000. This strategic adjustment aims to enhance financial support for small businesses in California by expanding access to loan resources critical for growth and development. This initiative aligns with broader economic development goals, enabling eligible small businesses to secure essential financing for their operations.

Sentiment

The general sentiment surrounding AB 1266 appears to be supportive, especially among proponents of small businesses and economic development initiatives. Advocates argue that the bill represents a vital commitment from the state to invest in local businesses and bolster the economy. However, it is important to note that while the majority sentiment leans towards support, there may be some concerns regarding the management and allocation of the increased funds, as well as ensuring that they are equitably distributed to benefit a wide array of small enterprises rather than being concentrated in specific industries or regions.

Contention

One notable point of contention in discussions around AB 1266 is the potential for misallocation of funds or overly stringent criteria for loan eligibility. Critics argue that while the intent to support small businesses is commendable, there should be adequate oversight and transparency to ensure that the funds reach those who genuinely need assistance. Additionally, the debate may include discussions about whether the increase in available funding will sufficiently address the disparities faced by various businesses in different economic sectors, with some arguing for more targeted support options.