Article 3. Allocations To State Agencies of California Government Code >> Division 1. >> Title 2. >> Chapter 7.5. >> Article 3.
(a) Whenever funds are available for purposes of this
chapter, the director shall make allocations from the funds available
in the amounts that he or she determines to be necessary to state
agencies for expenditure for making the investigations, estimates,
and reports required by this chapter. Those allocations may also be
made to provide for preliminary investigations, estimates, reports,
training of state agency personnel, or to reimburse the state
agencies for expenditures made in anticipation of actual applications
by local agencies. Allocations may also be made for the purpose of
making any investigations, estimates, and reports that may be
necessary to enable local agencies to obtain federal aid for disaster
relief purposes, regardless of whether or not that aid is available
for projects that are eligible for state allocations pursuant to this
chapter. The director may make allocations to any state agency or
office from those funds, or other funds available therefor, in the
amounts that are necessary to administer this chapter.
(b) When a proclamation of a state of emergency has been issued by
the Governor under the California Emergency Services Act (Chapter 7
(commencing with Section 8550)) and funds are available for purposes
of this chapter, the director may make allocations from the funds
available in the amounts that the director determines necessary to
state agencies for expenditures incurred performing extraordinary
emergency measures. An allocation pursuant to this subdivision is at
the discretion of the director, but an allocation shall not reimburse
either of the following:
(1) Employee costs related to emergency work activities.
(2) Any permanent repairs to the agency's own facilities.
(a) It is the intent of the Legislature:
(1) To provide the Governor with appropriate emergency powers in
order to enable utilization of available emergency funding to provide
guarantees for interim loans to be made by lending institutions, in
connection with relief provided for those persons affected by
disasters or a state of emergency in affected areas during periods of
disaster relief assistance, for the purpose of supplying interim
financing to enable small businesses to continue operations pending
receipt of federal disaster assistance.
(2) That the Governor should utilize this authority to prevent
business insolvencies and loss of employment in areas affected by
these disasters.
(b) In addition to the allocations authorized by Section 8683 and
the loan guarantee provisions of Section 63089.90, the Governor may
allocate funds made available for the purposes of this chapter, in
connection with relief provided, in affected areas during the period
of federal disaster relief, to the Small Business Expansion Fund for
use by the California Infrastructure and Economic Development Bank,
pursuant to Chapter 1 (commencing with Section 14000) of Part 5 of
Division 3 of Title 1 of the Corporations Code and Chapter 6
(commencing with Section 63088) of Division 1 of Title 6.7 of this
code, to provide guarantees for low-interest interim loans to be made
by lending institutions for the purpose of providing interim
financing to enable small businesses that have suffered actual
physical damage or significant economic losses, as a result of the
disaster or state of emergency for which funding under this section
is made available, to continue or resume operations pending receipt
of loans made or guaranteed by the federal Small Business
Administration. The maximum amount of any loan guarantee funded under
this paragraph shall be limited by the directives and requirements.
Each loan guarantee shall not exceed 95 percent of the loan amount,
except that a loan guarantee may be for 100 percent of the loan
amount if the applicant can demonstrate that access to business
records pertinent to the loan application has been precluded by
official action prohibiting necessary reentry into the affected
business premises or that those business records pertinent to the
loan application have been destroyed. The term of the interim loan
shall be determined by the lending institution providing the loan or
shall be made payable on the date the proceeds of a loan made or
guaranteed by the federal Small Business Administration with respect
to the same damage or loss are made available to the borrower,
whichever event first occurs.
(c) Loan guarantees for which the initial 12-month term has
expired and for which an application for disaster assistance funding
from the federal Small Business Administration is still pending may
be extended until the federal Small Business Administration has
reached a final decision on the application. Applications for
guarantees of interim loans shall be processed in an expeditious
manner. Wherever possible, lending institutions shall fund
nonconstruction loans within 60 calendar days of application. Loan
guarantees for loans that have been denied funding by the federal
Small Business Administration, may be extended by the financial
institution provided that the loan is for no longer than a maximum of
seven years, if the business demonstrates the ability to repay the
loan with an extended loan term, and a new credit analysis is
provided. All loan guarantees whose term has been extended under this
provision shall be repaid in installments of principal and interest,
and be fully amortized over the term of the loan. Nothing in this
section shall preclude the lender from charging reasonable
administrative fees in connection with the loan.
(d) Allocations pursuant to this section shall, for purposes of
all provisions of law, be deemed to be for extraordinary emergency or
disaster response operation costs, as provided in Section 8690.6,
incurred by state employees assigned to work on the guarantees
authorized by this section.
(e) The California Infrastructure and Economic Development Bank,
which is located within the Governor's Office of Business and
Economic Development, may adopt directives and requirements to
implement the disaster loan guarantee program authorized by this
section.
(f) As long as there are any outstanding small business disaster
loan guarantees, as authorized by Section 8684.2 or 63089.90, the
bank shall provide a report to the Legislature on loan guarantees
approved and rejected by gender, ethnic group, type of business and
location, and each participating loan institution. The report may be
combined with the report required in Section 63089.98.