CA SB625

Authorizes the California Pollution Control Financing Authority to establish the California Investment and Innovation Program to provide grants to community development financial institutions (CDFIs) to enhance their capacity to serve economically disadvantaged communities.

Establishes the California Investment and Innovation Fund and requires the authority to award grants to eligible CDFIs that meet specified criteria, including federal certification, minimum net worth of $25,000, and demonstrated lending activity in California.

Allows grant funds to be used for increasing net assets, establishing loan loss reserves, or funding working capital for services that support the community development mission, including technical assistance and capacity building for low-income communities.

Requires the authority to set aside at least 20 percent of annual funding for small and emerging CDFIs (those with less than $10 million in assets) and ensures geographic diversity in grant awards across urban and rural areas.

Renames the California Pollution Control Financing Authority to the California Community Development Financing Authority effective January 1, 2024, while retaining all existing powers and duties.