SANTA ANA, Calif. – Small Business Development Corporation of Orange County recently received two separate grants totaling $175,000 from a major national bank, further strengthening the corporation’s support of vulnerable startups and small companies.
The Los Angeles branch of Dallas-based Comerica Inc. (NYSE: CMA) awarded SBDC-OC on Dec. 1, 2020, two grants, one for $25,000 and the other for $150,000. Respectively, the funding allotments provide operating program support for SBDC-OC’s mission of providing small businesses access to capital and technical assistance, and to support the corporation’s direct lending capacity with respect to its Entrepreneur Loan Fund (ELF) to small businesses, particularly those adversely affected by the COVID-19 pandemic.
The funds were approved during this year’s fourth quarter and do not require development of new programs for utilization.
“Comerica’s success is dependent upon helping our communities succeed. Entrepreneurs and small business owners serve as pillars in our communities and now more than ever they need access to capital and technical aid. Comerica is committed to working with organizations like the Small Business Development Corporation of Orange County to ensure critical funding gets into the hands of small businesses adversely impacted by the COVID-19 pandemic. Together we can work together to ensure small businesses not simply recover but can march forward,” said Larry S. Reed, Comerica Bank External Affairs Senior Vice President, Community Impact and Compliance.
“Our profound appreciation to Larry Reed, a long-time community development partner and his team at Comerica Bank and its willingness to support capital access programs impacting underserved communities of greater need,” said Michael A. Ocasio, president and chief executive officer of Small Business Development Corporation of Orange County.
SBDC-OC, through the Disaster Relief Loan Guarantee Program provided by California Infrastructure and Economic Development Bank, or IBank, is helping businesses, in particular small ventures in underserved communities, weather drastically reduced revenue stemming from the pandemic as much of California society has moved online over the past nine months.
On April 2, the state increased the IBank’s Disaster Relief budget by $50 million, which coupled with a decision on March 16 to raise the state loan guarantee on qualified business loans to 95.0%, is providing significant aid to small ventures damaged by economic fallout from the pandemic. Since April, SBDC-OC has funded 80 disaster relief loan guarantees totaling $6.0 million which helped support over $6.4 million in bank and non-bank CDFI lending across the state.
SBDC-OC is a mission-driven organization that aims to provide capital access to businesses in underserved communities who typically have difficulty obtaining credit approval, loans and technical assistance. The IBank is a state general purpose financing authority which finances public infrastructure and private development. The IBank’s Small Business Finance Center administers the Small Business Loan Guarantee Program and the Disaster Relief Loan Guarantee Program which offer state guarantees on loans for small businesses.
