The U.S. Department of Treasury has authorized an additional $27 million in federal funding for the California Small Business Loan Guarantee Program (SBLGP) to provide loans to California small business owners and entrepreneurs.
California’s SBLGP originated over forty years ago with the mandate of providing repayment guarantees to lenders of loans to small businesses having difficulty securing financing on their own. The guarantees are issued by non-profit Financial Development Corporations (FDCs). Currently, there are eleven FDCs servicing the state. FDCs partner with banks, credit unions, and other lenders to help small business owners finance their plans including expanding operations, purchasing new equipment and infusing businesses with working capital. Guarantees may also be issued on loans for start-up costs. In fiscal year 2012-13, the program issued guarantees totaling $71,615,382 and supported the creation or retention of 5,666 jobs…. In total, California is receiving $55,645,861 for two programs including the SBLGP and California Capital Access Program (CalCAP) at the California State Treasurer’s Office.
California State Treasurer Bill Lockyer said, “Microloans have been especially successful in helping businesses in low-and moderate-income communities.”