Opinion No. (2004)

BILL LOCKYER Attorney General DANIEL G. STONE Deputy Attorney General THE HONORABLE STEVEN N. SAMUELIAN, MEMBER OF THE STATE ASSEMBLY, has requested an opinion on the following question: May a regional financial development corporation guarantee a loan based upon funds that were transferred by the Legislature from the Small Business Expansion Fund to the General Fund pursuant to the Budget Act of 2002-2003? CONCLUSION A regional financial development corporation may not guarantee a loan based upon funds that were transferred by the Legislature from the Small Business Expansion Fund to the General Fund pursuant to the Budget Act of 2002-2003. ANALYSIS The Legislature has enacted the California Small Business Financial Development Corporation Law (Corp. Code, §§ 14000-14099; "Act") 1 to promote the development of small businesses throughout the state. Section 14002 declares the Legislature's purposes as follows: "It is the intention of the Legislature in enacting this part to promote the economic development of small businesses by making available capital, general management assistance, and other resources, including loan services, personnel, and business education to…