SB 936 Summary

• Reduces the required loan guarantee reserve from 20-25% to 10% indefinitely for small business financial development corporations.

• Increases the maximum guarantee liability cap from 5-4 times to 10 times the amount of funds on deposit in the expansion fund plus receivables, applied indefinitely.

• Requires the program manager to leverage moneys in the expansion fund and trust funds in addition to distributing, transferring, and withholding funds.

• Updates legislative intent to reflect maximum use of statutory authority to guarantee loans with a minimum 10% loan loss reserve unless higher ratios are individually approved.