Legislature Responds to Calls for Restoration of Loan Guarantee Fund

Members of CAMEO and the Association of Financial Development Corporations took another positive step this week toward restoring the $10 million gutted from the Small Business Loan Guarantee Trust Fund in the budget process. While cuts to every state program need be considered in order to get through these historic budget deficits, certain programs that actually create jobs and generate revenue for the state have to be viewed differently.

Assemblyman Manny Perez and others are working to restore this funding because they understand this connection. In fact, a recent UC Davis study shows that for every dollar invested in small businesses from this fund, two dollars are returned to the state in tax revenue.

CAMEO and other small business advocates continue to push hard for recognition from state policy makers that dollar for dollar, investing state resources in micro businesses is the most efficient way to create jobs and lead California out of recession.