California Pollution Control Financing Authority: Capital Access Loan Program.

The California Pollution Control Financing Authority Act establishes the Capital Access Loan Program for small businesses, administered by the California Pollution Control Financing Authority, which provides loans through participating financial institutions to qualifying small businesses. The authority is required to create a loss reserve account for each financial institution. The act requires a financial institution, if it decides to enroll a qualified loan under the act in order to obtain the protection against loss provided by its loss reserve account, to notify the authority in writing, as specified, within 10 days after the date on which the loan is made. The act requires a participating financial institution, when making a qualified loan that will be enrolled under the act, to require the qualified business to which the loan is made to pay a fee of not less than 2% of the principal amount of the loan, but not more than 312% of the principal amount, for deposit in the loss reserve account. This bill would instead require a financial institution, if it decides to enroll a qualified loan under the act in order to obtain the protection against loss provided by its loss reserve account, to notify the authority in writing, as specified, within 15 days after the date on which the loan is made. This bill would authorize the Executive Director of the California Pollution Control Financing Authority to authorize an additional 5 days for a financial institution to submit this written notification on a loan-by-loan basis for a reason limited to conditions beyond reasonable control of the financial institution. The bill also, until April 1, 2017, would instead require a participating financial institution, when making a qualified loan that will be enrolled under the act, to require the qualified business to which the loan is made to pay a fee of not less than 1% of the principal amount of the loan, but not more than 312% of the principal amount, for deposit in the loss reserve account.