State Assistance for Enterprise, Business and Industrial Development Corp, better known as SAFE-BIDCO, was a United States non-depository lender set up by the California State Legislature for financing of small business loans in California.[1] SAFE-BIDCO was based in Santa Rosa, California[2][3] until its closure in September, 2017.[4][5]
History edit
SAFE-BIDCO was established in 1981 to provide loans to small businesses for the purpose of manufacturing or purchasing alternative energy equipment.[6]
In 1986 its mandate was expanded to include non-energy-related loans to minority owned small businesses or exporting companies.[7]
In 1997, the organization expanded its mandate to serve State Loan Guarantees to Northern California. In 2011, SAFE-BIDCO was authorized to use state loan guarantee trust fund capital to help secure farm loans, guaranteed by the USDA.[8]
In April, 2017, the State Auditor released a report warning SAFE-BIDCO was at high risk of insolvency. The report also noted, "Despite its declining financial position, SAFE-BIDCO has imprudently spent its limited funds on questionable items such as continuing with a business development contractor that did not meet his performance milestones for several years. Additionally, during fiscal years 2011–12 through 2015–16, SAFE-BIDCO's chief executive officer [Mary Jo Dutra] made 16 out-of-state trips and one international trip to Ireland."[9]
On September 15, 2017, the state Department of Business Oversight ordered the seizure of SAFE-BIDCO,[4] announced plans to liquidate the state-chartered nonprofit, and appointed Robb Evans as Special Commissioner.[10]
On September 18, 2017, the state Department of Business Oversight seized SAFE-BIDCO.[5]
References edit
- ^ "CAL. FIN. CODE § 32301 : California Code - Section 32301". findlaw.com. Retrieved 8 August 2014.
- ^ "Banking: SAFE-BIDCO expands ag lending – North Bay Business Journal - North San Francisco Bay Area, Sonoma, Marin, Napa counties - Archive". northbaybusinessjournal.com. Retrieved 2014-04-29.
- ^ "City of Anaheim - Low-Interest Energy Efficiency Loan Program". anaheim.net. Retrieved 2014-04-29.
- ^ a b "Order Taking Possession of Property and Business" (PDF).
- ^ a b "State seizes SAFE-BIDCO, will liquidate Santa Rosa lender". Santa Rosa Press Democrat. 2017-09-18. Retrieved 2017-10-20.
- ^ Kolanowski, Bernard (2011). Small-scale Cogeneration handbook. Fairmont Press. p. 75. ISBN 9780881736632.
- ^ "An Evaluation of the State's Alternative Energy Finance Progralll (SAFE-BIDeD)" (PDF). California Legislative Analyst's Office. January 1989. Retrieved 8 August 2014.
- ^ "Small business lending: local forum on Thursday". napavalleyregister.com. Retrieved 2014-04-29.
- ^ "At Risk of Insolvency, It Needs Increased Oversight if It Is to Receive State Funding and Continue to Help Small Businesses in California Gain Financing" (PDF).
- ^ "Certificate of Appointment" (PDF).