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Allik <br /> .-Nw� a <br /> CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY <br /> SMALL BUSINESS ASSISTANCE <br /> The California Pollution Control Financing Authority (the "Authority"), housed within the <br /> state Treasurer's Office, has several programs for small businesses needing financing for <br /> various types of pollution control equipment and facilities. <br /> CLEAN Small Business Loan Pro m <br /> In 1992 the Authority began issuing loans to small businesses under a program called <br /> California Loans for Environmental Assistance Now(CLEAN). Through CLEAN, the <br /> Authority provides loans to small businesses for the purchase and installation of pollution <br /> control equipment that meets current or future regulatory standards. Qualifying small <br /> businesses receive loans at very competitive interest rates with seven year terms. Loans can <br /> range from$10,000 to $750,000 in size. In order to recapture some of the costs of <br /> originating and servicing CLEAN program loans borrowers are charged a 2 percent loan <br /> origination fee. <br /> Capital Access Program <br /> The Capital Access Program is designed to increase the availability of bank loans for <br /> California small businesses. The program, through the use of loan reserve funds, provides <br /> a form of loan portfolio insurance for lenders so they may make loans to small businesses <br /> that carry higher than conventional risks. Any bank or savings and loan can participate in <br /> the.Capital Access Program. A reserve fund account is established for each lender in the <br /> Program. Premiums are paid on each loan by the lender, the borrower and the Authority <br /> and are deposited into the reserve funds to guarantee each lender's Capital Access loan <br /> portfolio. The strength of each bank's reserve fund increases as loan volume increases. <br /> The Authority's contribution to the reserve fund is an incentive for lenders to make loans <br /> that may not meet conventional underwriting criteria. The amount of the borrower's <br /> contribution to the reserve fund is determined by the lender based on risk,but cannot <br /> exceed 3.5 percent. The Capital Access Program is non-bureaucratic and flexible because <br /> the loan is a private transaction between the borrower and the lender. Similar programs <br /> are operating in Oregon, Michigan, Oklahoma and Massachusetts with great success. <br /> Tax-Exempt Bond Issuance <br /> Under the Tax-Exempt Bond Issuance program, small businesses may borrow from <br /> $750,000 to $20 million in tax-exempt debt, or bonds, to finance eligible pollution control <br /> and solid waste recovery facilities. Since the c6st of issuing this type of debt is very <br /> expensive for a small business, the Authority provides financial assistance for costs of <br /> issuance and credit support. This assistance is intended to offer small businesses interest <br /> rates that are comparable to what a large A-rated company could obtain. There is a small <br /> application fee for this program. <br /> Conventional Loan Guarantee Pro�aram <br /> Under the Authority's Conventional Loan Guarantee program, the Authority provides <br /> partial guarantees on conventional commercial loans made by banks or other qualified <br /> financial institutions. In order to offer small businesses interest rates that are comparable <br /> to what a large A-rated company could obtain, the Authority may also consider a direct <br /> interest rate buy down of up to 2%. <br /> For more information on these programs, please contact the California Pollution Control <br /> Financing Authority at 916-654-5610.sban <br /> a <br />