Chapter 5. Loan Operations of California Financial Code >> Division 15.5. >> Chapter 5.
(a) The finance officer shall not execute any loan that is
(1) Approved for guarantee by the Small Business Administration,
under that agency's prevailing standards for loans of similar type,
purpose, amount, and duration that are in effect at the time the
guarantee is approved by the agency.
(2) Approved for guarantee by another governmental loan guarantee
authority, and the minimum amount of the guarantee is not less than
50 percent of the principal amount of the loan.
(3) Made pursuant to the corporation's participation with the
Small Business Administration as a small business investment company
or local development company.
(4) Less than 16 percent of the total financing package arranged
between the corporation and another lender or lenders on behalf of
(b) This section does not apply to loans made pursuant to Section
The corporation shall not provide financing assistance on
any application, except for any application submitted for review as a
special project, which has not been reviewed in the manner specified
by the board.