AB 2523 Summary

• Authorizes the California Infrastructure and Economic Development Bank to enter into participation loan agreements with financial institutions to purchase interests in loans made to small businesses, upon legislative appropriation.

• Authorizes the bank to enter into syndicated loan agreements with financial institutions for loans made to small businesses, upon legislative appropriation.

• Requires the bank to include a summary of the participation loan agreement program in its annual report to the Governor and Joint Legislative Budget Committee, if appropriation is made, detailing jobs created, businesses assisted, geographic locations, and industry sectors.

• Expands the bank's definitions to include "loan syndication," "participation loan agreement," and "syndicated loan agreement" to enable these new financing mechanisms for small business development.