New California Micro-Lending Program

On April 2, 2020, California Governor Gavin Newsom announced that the state will be allocating $50 million to the California Infrastructure and Economic Development Bank to create micro-lending opportunities for small businesses to help individuals who do not qualify for federal funds under any of the new federal loan programs, including low wealth and undocumented immigrant communities. This Small Business Loan Guarantee Program allows small businesses to obtain a loan by guaranteeing up to 95% of the loan amount, for a period of up to 7 years. The interest rates under the program are to be negotiated between the lender and the borrower.

The loan proceeds under the program are meant to be used for the continuance of business operations including rent, payroll, and other business expenses. To qualify, a business or nonprofit must be located in California and employ between 1-750 individuals that have been negatively impacted or experienced disruption caused by COVID-19.

Qualifying businesses and nonprofits may apply by visiting the following page: https://www.ibank.ca.gov/small-business-finance-center/ and contacting one of the listed participating lenders.

For further information related to California’s Small Business Loan Guarantee Program, or to further explore the impact of the coronavirus on your business, please contact your main Glaser Weil partner, or contact Glaser Weil’s COVID-19 Taskforce at covid19taskforce@glaserweil.com.

This article has been prepared by Glaser Weil LLP and is intended for informational purposes only. It is not legal advice and its transmission is not intended to create, and receipt by you shall not constitute, the creation of an attorney-client relationship. While we have attempted to provide information as accurately and timely as possible, it is not intended to be a full discussion of all aspects of the subject matter and applicable in all jurisdictions. It is not a substitute for legal advice from a qualified attorney licensed in the appropriate jurisdiction and with knowledge of your particular facts and objectives. Glaser Weil LLP expressly disclaims all liability with respect to actions taken or not taken based on the contents of this article and urges you to contact us or any other qualified attorney to discuss in greater detail your legal situation.