Tag: funding

Congress fails to pass SBA Recovery Act – Old Rules Apply

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On a vote of 57-41, the U.S. Senate defeated legislation that would have keep the increased guarantees and fee waivers in place for another year. While lending to small business has been difficult at best, the return to the old rules will mean even fewer deals get done, since the banks will have more risk.

For working capital (7a) loans less than $150,000, banks will receive an 85% guarantee and will charge a 2% fee on the guaranteed portion. From $150,001 to $700,000 the guarantee is 75% and the fee is 3%. Loans above that amount will be 75% guaranteed with a 3.5% fee.

For SBA Express loans, the cap is$350,000 with a 50% guarantee and a 2% fee.

Most banks will allow rolling these additional fees into the loan.

Gov. Schwarzenegger Announces Loan Applications for Clean Energy Business Financing Program Available

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California Clean Energy Manufacturers Will Receive $30 million
The California Energy Commission today released the applications for the Clean Energy Business Financing Program (CEBFP), making available more than $30 million in low-interest loans to eligible California clean energy manufacturing businesses. The CEBFP will use American Recovery and Reinvestment Act (Recovery Act), State Energy Program (SEP) funds for 2.75 percent interest rate loans to private companies to reduce energy use, increase renewable energy generation, and create and retain California jobs.

“These loans for small business clean energy manufacturers will create jobs and upgrade our aging infrastructure,” said Governor Schwarzenegger.  “California is paving the way for a new economic foundation for the 21st century, showing once again that what benefits the environment can also benefit the economy.”

Loans to qualifying applicants will range from $50,000 to a maximum of $5 million and may be used to expand or retool existing facilities for the manufacturing of eligible energy efficiency or renewable energy products, components, systems and technologies. Loan funds are also available to successful applicants for projects generating either new production or expanded production of biomethane gas from biomass that is direct-injected into natural gas transmission lines.

“What these clean energy entrepreneurs require is affordable capital – private and public funding that keeps jobs and manufacturing in California and strengthens the state’s economy,” said California Energy Commission Chairman Karen Douglas. “These low interest loans will help manufacturers to produce their renewable or energy-efficient products, benefiting Californians and recouping some of our state’s lost manufacturing jobs.”
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CA i-HUB Initiative- ROUND II GUIDELINES RELEASED

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From Michael Gonzalez at the Governor’s Office of Economic Development:

The CA i-HUB initiative is designed to promote collaboration, create employment opportunities, shorten the commercialization process

and attract funding for technology.  Our new colleague, Katy McKenzie, is the Assistant Deputy Director for Innovation at our office and will be the primary contact for the CA iHub Initiative.  For more information about the program as well as the guidelines for Round II, please see the attached pdf files or visit our website at business.ca.gov.

*****Round II offers two application deadlines. Applications can be submitted on either May 20 or July 22!*****

Please send any questions about this initiative to katy.mckenzie@gov.ca.gov.

Round II iHub Guidelines GoED Guidelines Release, 4.22.10

California’s Contracting with Small Business and Disabled Vets Exceeds State Goals

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SACRAMENTO, Calif. — California state agencies in two of the last three years exceeded goals for contracting with small businesses and set a record for contracts with firms owned by disabled veterans, the Department of General Services announced today, releasing reports for the 2007/08 and 2008/09 fiscal years .
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Gov. Schwarzenegger Signs Legislation for Green Tech Manufacturing Equipment Sales Tax Exemption to Create Jobs

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For Immediate Release:
Wednesday, March 24, 2010

Contact: Aaron McLear/Kira Heinrichs
916-445-4571

Building on his commitment to clean technology growth in California, Governor Arnold Schwarzenegger today signed SB 71 by Senator Alex Padilla (D-Pacoima) to create a sales tax exemption for the purchase of green tech manufacturing equipment in California. This tax exemption is a part of the Governor’s California Jobs Initiative, a legislative package that will create or retain at least 100,000 jobs.
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California Recovery Task Force Launches Interactive Web Portal

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Press Release

For Immediate Release:  03/23/2010

Contact: Aaron McLear/Eric Alborg
916-445-5880

California Recovery Task Force Launches Interactive Web Portal

In an effort to provide unprecedented transparency of stimulus spending in California, the California Recovery Task Force has launched an interactive Web Portal (www.recovery.ca.gov) that tracks the more than $85 billion in cash and tax benefits expected overall for Californians.

“Tracking stimulus money has further underscored the need to break through the silos of government at the federal, state and local levels,” said Senior Advisor to the Governor and California Recovery Task Force Director Herb K. Schultz.  “Our Web Portal will continue to evolve in order to provide the most transparent picture of government spending in U.S. history.”

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SBA Recovery Act Funding Extended

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Extension of SBA Recovery Lending Programs Will Support $1.8 Billion in Small Business Lending

Agency plans to restart Recovery loan approvals on March 10

WASHINGTON – President Barack Obama signed legislation Tuesday extending until March 28 the U.S. Small Business Administration’s ability to provide small business loans that are enhanced with special provisions of the American Recovery and Reinvestment Act (ARRA), including a higher guarantee of SBA-backed loans and a waiver of loan fees normally paid by borrowers.

SBA estimates the additional funding will support about $1.8 billion in small business lending.
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Regulators ease up on small business loans | CNN Money

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I hope this is true.

Hoping to ease the small-business credit crunch, six regulatory agencies recently banded together in a joint statement essentially promising to back off second-guessing banks’ loans. “Prudent” small business lending “will not be subject to supervisory criticism,” a regulatory group led by the Federal Deposit Insurance Corp (FDIC) said earlier this month.

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Failing Big Banks? Euthanize ‘Em! | Mother Jones

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It’s a plan Volcker has been pushing since he emerged on the financial-reform scene in the past year or so, and Obama so far seems to be support some kind of bank wind-down process. “You get very aggressive traders, and they’re out there,” Volcker said. “Millions of dollars are at stake, and personal bonuses, so they have a real incentive to take risks, which is fine, if you’re not being protected by the government.”

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