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Economic Development
Glenn Stober
Director
California Small Business Loan Guarantee Program
For more information about SBLGP and its programs, go to www.calbusiness.ca.gov/cedpgybfasblgp.asp.
Responsibilities and accomplishments include:
Providing access to capital for small businesses:
- Provided 1,319 guaranteed loans in FY 2006-07, the program’s highest one-year total and an increase of 51 percent since 2002-03.
- Guaranteed $161 million in financing for small businesses in FY 2005-06, an increase of 61 percent since 1999-00.
- Achieved an all-time farm loan component high in FY 2005-06 by financing 92 small, family-owned farms, an increase of nine farm borrowers compared to the previous high in FY 2004-05, and over twice the number of farm borrowers assisted in FY 2002-03.
- Helped to retain and create 17,921 jobs in FY 2005-06, an increase from the previous annual high of 17,424.
Managing assets to maximize the number of small businesses served:
- Reduced costs to the state's General Fund for each loan guarantee completed by 44 percent since FY 2002-03, while the number of clients served increased by 51 percent.
- Achieved a net guarantee default rate of 0.59 percent for the five-year time period ending June 30, 2007, which exceeds the lending-industry average.
Assisting small businesses facing disaster and regulatory costs:
- Activated the Farm Disaster Assistance Loan Guarantee Program to help farms and small businesses obtain financing needed to recover from losses caused by the October 2007 wildfires.
- Launched the Metal Plating Facility Loan Guarantee Program on July 1, 2006 to help facilities in California purchase and install state-of-the-art pollution control equipment required to meet new hazardous waste emissions rules and mitigate potential job losses.
The state Small Business Loan Guarantee Program (SBLGP) provides guarantees on bank loans to small businesses that would otherwise not be made. A network of 11 Small Business Financial Development Corporations - working closely with small business borrowers and local community banks - issues the guarantees on behalf of the state. The guarantees are backed by a trust fund that can be leveraged four times. The state currently guarantees more than $276 million in outstanding loans.
"Small business is big business in California," SBLGP Director Glenn Stober said. "The SBLGP helps businesses to start, survive and succeed, returning $2 in tax revenue for every $1 the state invests."