California Infrastructure and Economic Development Bank: participation loans.

Existing law authorizes the California Infrastructure and Economic Development Bank to enter into loan agreements with a sponsor or a participating party in order to finance a project related to infrastructure or economic development. Existing law requires the bank to submit an annual report to the Governor and the Joint Legislative Audit Committee on various topics related to the operation of the bank's projects. This bill would authorize the bank, upon appropriation by the Legislature, to enter into participation loan agreements, as defined, with financial institutions for the bank to purchase interests in loans made or held by financial institutions to small businesses. The bill would require the bank, if an appropriation is made to finance the participation loan program, to include in its annual report a summary of the participation loan agreement program, and would require the bank to also submit that portion of the report to the appropriate policy and fiscal committees of the Legislature. The bill would authorize the bank, upon appropriation by the Legislature, to enter into syndicated loan agreements, as defined.