Finance
Capital Programs and Climate Financing Authority Act: California Investment and Innovation Program
SB 700 lets California fund grants to community development lenders that expand capital and technical help in disadvantaged communities.
The law adds grants to the state’s small-business financing tools, supporting community development financial institutions’ ability to help underserved communities obtain financing.
What the law does
- Authorizes the Capital Programs and Climate Financing Authority to create small business assistance funds for grants to community development financial institutions.
- Adds those grants to the financial assistance the authority may provide through the California Investment and Innovation Program.
- Requires repayments or returned assistance to go back into the fund that supplied it.
- Places each assistance fund in a Controller-created special account and credits its investment earnings to that account.
Who it affects
- Community development financial institutions receiving grants under the California Investment and Innovation Program.
- Economically disadvantaged communities seeking technical assistance and access to capital.
- Small businesses and participating borrowers eligible for assistance from the authority’s funds.