The funds from the U.S. Department of Treasury are funneled to California’s Small Business Loan Guarantee Program, which backs loans to small businesses that might not otherwise qualify for traditional bank lending.

California gets $55.6 million in new federal funds for small business

Published: Wednesday, Jan. 15, 2014 - 6:03 pm
Last Modified: Wednesday, Jan. 15, 2014 - 10:48 pm

In an ongoing effort to help California’s small businesses and startups, state officials announced Wednesday that California has received an additional $55.6 million in federal funds.

The money was split evenly between two state programs that provide guarantees for small business loans: the Small Business Loan Guarantee Program, run by California Infrastructure and Economic Development Bank, and the California Capital Access Program (CalCAP) in the state Treasurer’s Office.

“California’s small businesses owners will have even greater access to capital which will allow them to expand their businesses and create jobs,” said Teveia Barnes, executive director of the state’s Infrastructure and Economic Development Bank, known as I-Bank, in a statement.

The funding, from the U.S. Treasury, is intended to help small businesses that might have trouble accessing conventional loans from banks, credit unions and other lenders.

“We have financed everything from yoga studios and local mom-and-pop businesses to manufacturing and food-processing centers,” said I-Bank spokesman Brook Taylor. He said the funding is an “ongoing infusion” from the federal Small Business Jobs Act of 2010.

In fiscal year 2012-13, the state’s loan guarantee program issued $71.6 million in loan guarantees for small businesses statewide, including $275,000 to Ginger Elizabeth Chocolates in midtown Sacramento for new equipment purchases.

Small businesses statewide can apply for the I-Bank loans through one of 11 non-profit Financial Development Corporations (FDCs), which partner with banks, credit unions and other lenders to help small business owners.

Call The Bee’s Claudia Buck, (916) 321-1968.

Read more articles by Claudia Buck

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