SB 1116 Summary

• Extends the notification deadline for financial institutions to enroll qualified loans in the Capital Access Loan Program from 10 days to 15 days after loan disbursement, with Executive Director authority to grant an additional 5-day extension for circumstances beyond the institution's reasonable control.

• Reduces the minimum borrower fee requirement from 2% to 1% of the principal loan amount (maintaining the 3.5% maximum) until April 1, 2017, when the requirement reverts to 2%.

• Requires participating financial institutions to match borrower fee contributions to the loss reserve account and deliver combined fees to the California Pollution Control Financing Authority for deposit.

• Authorizes the Authority to transfer matching funds to loss reserve accounts at 100% of institutional fees, or 150% for qualified businesses in severely affected communities.