California Pollution Control Financing Authority.

Assembly Member Jackson's legislation expands California's Capital Access Loan Programs by establishing new funding mechanisms and broadening financial assistance options for small businesses seeking Americans with Disabilities Act compliance and seismic safety improvements. The bill modifies how the California Pollution Control Financing Authority (CPCFA) manages and distributes program funds while creating additional pathways for private, state, and federal funding sources.

The measure creates a new California Capital Access Fund to receive and manage program monies from various sources. Under this framework, the CPCFA gains authority to divide funds into separate accounts and must deposit all program-related revenue into the designated fund. When accessing new funding sources, the authority must develop specific terms and conditions governing how financial assistance will be provided.

For the Americans with Disabilities Act and Seismic Safety Capital Access Loan Programs, the bill expands allowable expenditures to include loans, loan loss reserves, interest rate reductions, and other forms of direct financial support. Program funds remain continuously appropriated, with administrative costs capped at 5 percent of initial appropriations plus 5 percent of recaptured funds. The legislation maintains existing certification requirements for participating lenders while establishing new protocols for fund management and investment.

The bill also updates definitions of qualified financial institutions to encompass additional federally and state-chartered entities, including microbusiness lenders meeting authority standards. These expanded definitions aim to increase lender participation while maintaining program oversight through loss reserve accounts and certification processes. For seismic retrofit projects, the measure specifies eligible costs and sets loan limits while requiring validation that proceeds support qualifying improvements.