The Pollution Control Financing Authority, located in the State Treasurer's Office, provides businesses in California with an affordable method of financing pollution abatement equipment, waste disposal and resource recovery facilities for the management of environmental pollution hazards. The Authority offers tax-exempt or taxable bonds and loan portfolio insurance to businesses seeking financing for qualified pollution control projects. The entire cost of a pollution control project, including land and buildings attributable to the project, equipment, engineering fees and related financial and administrative expenses, can be funded by the program. The Small Business Administration's loan guarantee program promotes job retention and creation and encourages small business entrepreneurship particularly among minority, women, and disabled persons. The State of California's Small Business Loan Guarantee Program differentiates itself from the U.S. Small Business Administration's programs by providing a niche in guarantee financing on revolving lines of credit, small loans and agricultural loans.
Businesses applying to the program receive funding from a private lender.
This loan is guaranteed by one of 12 nonprofit regional development corporations organized under the California Corporations Code. All loan proceeds must be used in California and the proceeds cannot be used for entertainment enterprises or speculative purposes. To qualify a borrower must not be able to obtain credit based solely on his or her own financial condition, but must demonstrate reasonable capacity to repay the loan. Interest rate and loan origination fees are negotiated by the borrower and the lender. Through the SBA 504 Program, CDC's provide 90 percent real estate financing with a special emphasis on rural areas and distressed urban areas.