There have been times in recent history when small businesses have been the stepchild of the American economy. The Great Recession is a good example. While big businesses were flush with money many small businesses had a tough time just getting a loan. At times like this the state and federal governments have been providing a lifeline.
In 1981 the State Legislature of California established the State Assistance for Enterprise, Business, and Industrial Development Corporation (SAFE-BIDCO). Based in Santa Rosa, California, it was originally founded to provide loans and assistance to new companies in the energy conservation and production technologies trades. It has evolved into an agency that provides and guarantees loans for all kinds of small businesses. In 1997 it expanded its mandate to include offering federal loans into Northern California.
Today the agency has a number of loan programs designed to help fledgling California businesses. These loan programs include a State Loan Guarantee Program, SBA Loans 7(a), a Rural Loan Program, Energy Efficiency Loans, Microloans, Farm Loans, loans for Native American businesses, and Disaster Recovery Loans.
Moreover, SAFE-BIDCO provides loan fund management services including specially customized services to lending organizations and other government entities. This includes the creation and establishment of revolving loan funds, commercial underwriting and documentation services, assist lenders to handle loan services, and loan marketing.
When it comes to creating and establishing revolving loan funds, SAFE-BIDCO will be involved with the creation of borrower eligibility criteria, underwriting principles, reporting requirements, practices for loan fund disbursement, credit memorandum criteria loan program policies and procedure manuals, loan program policy and procedures, loan committee policy and procedure manuals, and loan application and documentation packages.
SAFE-BIDCO’s involvement in commercial underwriting services includes the creation of loan application packages, evaluation of loan applications, assessing opinions on an applicant’s financial eligibility, determining collateral, and preparing underwriting memorandum.
The company’s commercial loan document services may include creating procedures for the disbursement of funds, preparation of loan documents, and determining the credit worthiness of the borrowers and their ability to repay the loan.
SAFE-BIDCO’s tasks in loan servicing includes document recording, covenant and insurance tracking, billing and payment collection, coordinating collection and liquidation, maintaining segregated depository accounts when multi-fund programs are involved, monitoring use of loan program proceeds, reporting on loan data, and mentoring services.
SAFE-BIDCO will market loans by identifying marketing objectives, determining marketing strategies, creating strategies for reaching target applicants, increasing community awareness, advising on the design of promotional materials, drafting market plans, hosting seminars or information meetings with target groups, and producing informational media that promotes the programs.
Finally, SAFE-BIDCO creates and publishes a newsletter on its website that discusses news involving the agency and describes success stories about companies that have flourished due to SAFE-BIDCO’s assistance.
For more information about SAFE-BIDCO and on how to get a loan, visit the firm’s website.