Bill > AB2523

This bill amends the Government Code to enhance the California Infrastructure and Economic Development Bank's (I Bank) ability to support small businesses and economic development by allowing it to enter into syndicated loan agreements, in addition to existing participation loan agreements, with financial institutions. A "syndicated loan agreement" refers to a loan provided by multiple lenders, which can be structured, arranged, or managed by one or more financial institutions. This expansion, contingent on legislative appropriation, aims to increase access to capital for small businesses and farms, foster job creation and retention, and provide stability to the local financial sector without directly competing with banks. The bill also updates definitions within the Government Code to include "loan syndication" and "syndicated loan agreement," and modifies reporting requirements to include information on syndicated loan agreements if they are implemented.