Section 8078.36 - Alternative Funding Source(a) The Authority may from time to time have access to external funding, including from the Federal State Small Business Credit Initiative (SSBCI) pursuant to the American Rescue Plan Act of 2021 (ARPA) for a loan participation project (LPP), enabling the Authority to provide capital through various financing mechanisms for small business growth and expansion.(b) When the Authority gains access to external funds, the Authority shall develop and adopt by resolution the terms and conditions describing the alternative funding source program, including the following information:(1) The total amount of funding available.(2) The target interest rate.(3) If applicable, the maximum amount of funding available per Eligible Loan.(4) An indication of loan eligibility, borrower eligibility, or other eligibility criteria that shall qualify as an Eligible Loan.(5) Terms for the process by which Participating Financial Institutions (PFI) may apply to participate in the alternative funding source program, and how the funding shall be calculated and disbursed.(c) The Authority may contract with a third-party administrator to:(1) Provide operational capacity, skills, relationships, and expertise to manage the alternative funding source program;(2) Provide the Authority with all necessary data and information needed for reporting;(3) Assist with loan participations and coordination between the Authority and PFIs;(4) Collaborate and partner with California community banks and other State agencies to market and advertise the alternative funding source program;(5) Create and develop an accessible digital database to collect loan requests for screening and pre-qualification; and coordinate the selection, assembly, and management of the PFI.(d) The terms of an alternative funding source program shall not contradict or override existing requirements and criteria described in this Article.Cal. Code Regs. Tit. 4, § 8078.36
Note: Authority cited: Sections 44520 and 44559.11, Health and Safety Code. Reference: Sections 44525, 44526(e)-(f), 44559(a)-(b), 44559.1, 44559.6 and 44559.11; and 12 U.S.C. Sections 5701-5710.
1. New section filed 9-30-2024 as a deemed emergency pursuant to Health and Safety Code section 44520(b); operative 9/30/2024 (Register 2024, No. 40). A Certificate of Compliance must be transmitted to OAL by 4-1-2025 or emergency language will be repealed by operation of law on the following day.