SB 700: Capital Programs and Climate Financing Authority Act: California Investment and Innovation Program.

The Capital Programs and Climate Financing Authority Act establishes the Capital Programs and Climate Financing Authority, consisting of the Director of Finance, the Treasurer, and the Controller. Among other things, the act authorizes the authority to establish one or more small business assistance funds to do various things, including fund a capital access program for small businesses pursuant to specified law, provide various forms of financial assistance, and make or acquire loans or guarantee commercial loans to participating parties eligible for assistance from those funds. The act requires any moneys repaid or returned to the authority in connection with or as a result of any loan or financial assistance made pursuant to these provisions to be deposited in the small business assistance fund from which the loan or assistance was originally provided. For the purpose of establishing and maintaining small business assistance funds, the act authorizes the authority to levy fees or other charges on, or require deposits from, participating parties receiving financing for a project under the act, as specified.

The act requires the authority to establish the California Investment and Innovation Program for the purpose of providing grants to enhance the capacity of community development financial institutions to provide technical assistance and capital access to economically disadvantaged communities in the state, as specified. Existing law defines various terms for these purposes.

This bill would authorize the authority to establish one or more small business assistance funds to fund a grant program for community development financial assistance pursuant to the California Investment and Innovation Program. The bill would include in the list of allowed financial assistance that the authority may provide under the act grants made to community development financial institutions in furtherance of that program. By expanding the purposes for which moneys in a continuously appropriated fund may be used, this bill would make an appropriation.