CA SB551

Transfers the loan loss reserve portfolio of the California Capital Access Loan Program from the California Pollution Control Financing Authority to the California Small Business Finance Center by January 1, 2020.

Creates a Loan Loss Reserve Account within the California Small Business Expansion Fund under the control of the California Small Business Finance Center, with continuously appropriated funding for small business lending programs.

Establishes the California Loan Loss Reserve Program for Small Business to provide credit enhancement and loss reserves for qualified financial institutions and companies participating as lenders, prioritizing loans benefiting low-income areas and underserved business ownership groups.

Requires transfer of all federal and state funds (from the Small Business Jobs Act and 2010 General Fund appropriation) currently held by CPCFA to the new Loan Loss Reserve Account for administration by the California Small Business Finance Center.

Maintains existing regulations adopted by CPCFA for loan loss reserve management and claims processing until the bank adopts its own directives and requirements, with a one-year transition period following portfolio transfer.