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.