Senator Ben Hueso of San Diego has introduced SB 551 (Hueso), sponsored by Opportunity Fund, that makes several changes to the CalCAP Program. These changes are meant to increase transparency in the program and ensure that lenders will have access to funds even if the program runs out of funding. The main tenets of the bill are:
- Lower required match rate: Reduce the minimum amount lenders and the state have can contribute on each covered loan from 2% to 1%, thus ensuring public funds go further, helping more businesses thrive.
- Flexibility: Lenders will be able to enroll new loans against existing account balances even if the state does not have new funds to contribute ensuring access to existing account coverages.
- Transparency: Clarify procedures for returning contributions if lenders exit program. Lenders would receive back existing lender-contributed account balances.
In addition, if the state does not have funds to match, a small fee will be assessed to the lender both upon loan enrollment and upon claim submission that will go towards CPCFA operating expenses. This was included to give CPCFA capacity to operate even if new funding can’t be secured for the program.
As of yet, CPCFA has not weighed in or given comment on the bill.
Please consider submitting a letter of support.
1. Complete the SB 551(Hueso) Draft Letter of Support Template.
2. Scan a signed copy to PDF.
3. Email PDF letter of support to Senator Hueso’s staffer Aaron Brieno, and CC Gabriel Villareal and Paul Donahue.
As we don’t have an exact date of when SB 551 (Hueso) will be referred to committee, please draft and send a copy of your support letter by Friday, March 10th. This way, support will be ready to go for when the bill does come to committee.