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Two Decades Of Providing Capital and Capacity To Small Businesses-Comstock's Magazine

Posted on: June 30, 2004
California Capital Financial Development Corporation
June, 2003, Comstock's Business Magazine

Two Decades Of Providing Capital and Capacity To Small Businesses

A Northern California corporation that provides financing for small business owners who do not have traditional financing opportunities available to them? Yes!

Celebrating 20 years of providing capital and capacity, California Capital Financial Development Corporation supports and promotes small business entrepreneurship and growth by offering financing, education and technical assistance while encouraging the cultivation of asset building strategies.

For two decades, California Capital has maintained strong partnerships with over 20 financial institutions to serve small businesses in over 22 Northern California counties. California Capital opened its doors in January 1983, chartered by the California Technology, Trade and Commerce Agency, Office of Small Business as a non-profit corporation. California Capital currently has over 150 active guaranteed loans made to small businesses in its portfolio a number that continues to increase as Northern California counties grow.

Historically, loans guaranteed by California Capital have provided small businesses with working capital which facilitates the acquisition of capital assets all with the goal of stimulating business development, expansion and employment," says Clarence Williams, president of California Capital. We serve as an intermediary between banks and borrowers, making it possible for small business owners to secure financing unavailable through traditional financial institutions.

California Capital also collaborates with other organizations that focus on economic development and offering financial assistance to underserved communities. For example, California Capital partners with SMUD providing guarantees on loans made to energy-related businesses, and contract financing for vendors providing goods or services to SMUD.

At California Capital, it is imperative we recognize the ever-changing economic environment that can drastically affect small business, says Williams. As such, California Capital has stepped up to the challenge by undergoing dramatic changes in its delivery of products, services and financing opportunities, assisting small businesses in their efforts to succeed. While the loan guarantee product is considered a non-traditional means of business financing, California Capital has taken it a step further through the development and delivery of EnterFund.

EnterFund, is an innovative and aggressive approach to delivering financial literacy education, technical assistance, microenterprise loans, and Individual Development Accounts an asset building strategy through a matched savings plan. Businesses that benefit from EnterFund typically have less than five employees, with virtually no financing opportunities available to them. California Capital has also experienced great success in delivering business education to the limited and non-English speaking business community through business success forums, which thus far have been offered in Chinese, Vietnamese, Hmong, Mien, Spanish and Russian.

California Capital is proud of its recent certification as a Community Development Financial Institution (CDFI) by the U.S. Department of Treasury, and California Department of Insurance, California Organized Investment Network (COIN). CDFI certification is significant to organizations with a mission to provide necessary resources for underserved communities that assist them in achieving their goal of business success and self-sufficiency. As a result of being a certified CDFI, California Capital is also designated as a Community Development Entity (CDE), through which U.S. Department of Treasury's New Markets Tax Credit Program allows the corporation to attract private investment capital. Private investors will realize a 39% tax credit over a seven-year period. These investments allow California Capital to leverage those funds by investing in projects that enhance community and economic development opportunities in underserved communities.

Williams adds, It's not easy being a small business owner given today's economy. But, with California Capital's solid placement in the communities we serve and its commitment to provide hands-on financial assistance and quality community and economic development programs, more businesses will thrive and grow into industry leaders.

The history of California Capital is best reflected in the stories told through businesses served over the past twenty years. These stories include: a daycare center that has allowed single mothers to maintain their jobs; a 33-year-old family-owned restaurant that started out as a small drive-in and now has seating capacity for over 250 customers; a management consulting firm that began with one employee and is now global; a small technology firm that is now a publicly-traded company. This is merely a sampling of the impact California Capital has had on the vitality of California's small business community.

Clarence Williams, who has led California Capital through this growth says, California Capital is committed to its quest of being an integral participant in the growth of the vibrant industry of small business ownership and the economic strength of California.