CA AB2671

Extends the 5x leverage ratio limit for guarantee liability (amount of funds on deposit in California Small Business Expansion Fund) until January 1, 2018, when a reduced 4x ratio becomes effective.

Maintains the 20% minimum loan loss reserve requirement until January 1, 2018, after which it increases to 25%, with director discretion to permit higher leverage ratios for individual corporations.

Repeals obsolete requirement that the former Trade and Commerce Agency conduct an independent statewide assessment of capital needs and establish minimum siting standards for small business financial development corporations by June 30, 1998.

Creates dual operative provisions that take effect on January 1, 2018, allowing the stricter 4x leverage ratio and 25% reserve requirements to replace the existing 5x ratio and 20% reserve standards.