The Senate Appropriations Committee will soon consider a California Chamber of Commerce job creator bill that encourages creation of small businesses by expanding their access to loans.
SB 936 (Hertzberg; D-Van Nuys) expands the availability of loans through the Infrastructure and Economic Development Bank’s (IBank) California Small Business Loan Guarantee Program.
“The program helps businesses create and retain jobs,” said CalChamber Policy Advocate Valerie Nera in today’s Capitol Report video. “It promotes statewide economic development by supporting loans to small businesses that would not otherwise qualify.”
Small businesses establish a favorable credit history with a lender under this program and then are able to obtain future loans on their own. The program has been in place since 1968 with almost no defaults.
SB 936 increases the IBank’s ability to leverage state and federal funding, thus incentivizing private lending and economic investments. The loan guarantee program uses state and federal funding to create a loan loss reserve, which reduces the risk of lending to small businesses.
The CalChamber is urging members to contact their senators and committee members to express support for SB 936.
An easy-to-edit sample letter is available at calchambervotes.com.
Staff Contact: Valerie Nera