SECTIONS 31020-31021 - California Statutes

FINANCIAL CODE

SECTION 31020-31021

31020. The Legislature finds all of the following:
(a) That it is necessary to increase job opportunities in this
state.
(b) That promoting the establishment, growth, and expansion of
business firms in this state is an efficient way to increase job
opportunities in this state.
(c) That it is appropriate to provide for the licensing and
regulation of business and industrial development corporations which
will provide financing assistance and management assistance primarily
to business firms in this state.
(d) That the federal government, through the Small Business
Administration and other federal agencies, offers programs for
providing, through such intermediaries as business and industrial
development corporations, financing assistance and management
assistance to business firms in this state.
(e) That, in order that this state may obtain the full benefits of
such programs, it is necessary that this state provide for the
licensing and regulation of business and industrial development
corporations.
(f) That only California corporations should be licensed to
transact business as business and industrial development corporations
because, compared with other types of persons, California
corporations can be more effectively regulated and supervised, have
greater permanency of existence, and can give better assurance of
uninterrupted service.

31021. (a) The purposes of this division are:
(1) To provide for the licensing and regulation of business and
industrial development corporations which will provide financing
assistance and management assistance primarily to business firms in
this state.
(2) To provide for the licensing and regulation of business and
industrial development corporations so that such corporations will
constitute state development companies for purposes of Sections 501
and 502 of the Small Business Investment Act of 1958 and eligible
lending institutions for purposes of Section 7(a) of the Small
Business Act.
(3) To provide for the safe and sound conduct of the business of
licensees.
(4) To maintain the confidence of the Small Business
Administration and other governmental agencies in licensees.
(b) The purposes of this division, as set forth in subdivision
(a), constitute standards which the commissioner shall observe in
administering the provisions of this division.