SANTA ANA, Calif. – Dallas-based Comerica Bank and Small Business Development Corporation of Orange County next month will celebrate Comerica’s $1 million investment in SBDC-OC’s mission of helping vulnerable businesses achieve success.
Representatives of both organizations will hold an official check-signing event on Thursday, Aug. 4 marking the development corporation’s receipt of the funds. The ceremony will be held at 11:30 a.m. at SBDC-OC’s headquarters at 271 N. Sycamore St., Santa Ana.
Dubbed an EQ2 investment, the $1 million outlay is an Equity Equivalent investment which will function as a deeply subordinated loan with certain features that allow it to work like equity. Such bank investments serve as tools to help community development financial institutions, or CDFIs increase lending in economically disadvantaged areas. SBDC-OC is a state-certified CDFI and Comerica’s $1 million EQ2 investment will support its activities that help small businesses successfully operate their ventures by accessing capital and receiving general management assistance and business education. The corporation’s mission is particularly focused on businesses located in low-to-moderate income communities or opportunity zones and that are owned by women, people of color, the disabled and veterans.
Small Business Development Corporation, which is a nonprofit public benefit corporation, functions as one of seven Financial Development Corporations in California operating under the state’s public municipal bank, The California Infrastructure and Economic Development Bank known as IBank. Among other things, the corporations administer the long-standing State Loan Guarantee Program which provides credit guarantees for eligible small businesses seeking loans or lines of credit from lenders. The program is among many different funding and business services products SBDC-OC offers the small business community in Southern California and other parts of the state. Its offerings include the Entrepreneur Loan Fund, Disaster Assistance Loan Guarantee Program and the California Capital Access Program.
The EQ2 investment’s unique features include its function as a general obligation debenture on SBDC-OC’s balance sheet that is not secured by company assets. It is also subordinated to the development corporation’s other creditors. The investment includes a 10-year term and fixed low-market interest rate.
“On behalf of SBDC-OC’s board of directors we are thrilled and delighted to have received Comerica Bank’s $1.0 million equity investment which will be utilized to expand the agency’s small business lending platform and future affordable housing initiatives,” said Michael A. Ocasio, president and chief executive officer.
ABOUT SMALL BUSINESS DEVELOPMENT CORPORATION OF ORANGE COUNTY
SBDC of Orange County (http://sbfdoc.org) is a quasi-public/private 501(c)(3) not-for-profit public benefit corporation, which operates under the state’s public municipal bank, The California Infrastructure and Economic Development Bank (IBank). SBDC of Orange County is not affiliated with the U.S. Small Business Administration.
The corporation, established in 2001, is a mission driven organization dedicated to assisting small business owners secure operating capital through its capital access programs including California’s State Loan Guarantee Program, Export Lines of Credit, Bond Conduit and Green Energy Initiatives to support small business access to credit.
