Economic development: small business.

(1) Existing law establishes the California Economic Development Fund in the State Treasury to receive economic development funds and loan repayment and grant proceeds and authorizes the Secretary of Business, Transportation and Housing, upon appropriation by the Legislature, to expend the fund's revenue to provide matching funds for economic development purposes. Existing law establishes certain definitions in this regard and defines a financial intermediary and a community development intermediary to include, among other things, microenterprise development organizations. This bill would delete the reference to microenterprise development organizations in the definitions of financial intermediary and community development intermediary and would instead provide that a financial intermediary and a community development intermediary include microbusiness lenders, as defined. (2) Existing law establishes the Capital Access Loan Program, which is administered by the California Pollution Control Financing Authority, and defines the term "financial institution," for purposes of that program. The authority is required to include specified terms in any contract that the authority enters into with a financial institution participating in the program, as specified. Existing law requires the authority to submit a report annually to the Governor and the Legislature that describes the financial condition and the programmatic results of the Capital Access Loan Program for small businesses. This bill would revise the definition of the term "financial institution" to include a small business financial development corporation or microbusiness lender that meets standards that shall be established by the authority and to include depository institutions, insured credit unions, and community development financial institutions, as defined pursuant to federal law. This bill would require that the form contract used by the authority when contracting with a participating financial institution include provisions requiring the financial institution to provide information to the authority on the number of jobs created and the number of jobs retained relative to loans made by the financial institution under the program. The bill would also specify, for purposes of the annual report to the Governor and the Legislature, that programmatic results include, but are not limited to, the total number of businesses served, jobs created, jobs retained, the geographic distribution of the loans, and the breakdown of businesses served by industry sector, as specified.