SANTA ANA, Calif. – Just after Christmas, Small Business Development Corporation of Orange County (SBDC-OC) got the good news it had been waiting for – the science behind an ocean-powered innovation was state-verified, giving the development corporation surety in backing financing for the new technology’s startup, Seatrec.
Heading into 2024, Vista-based Seatrec will support production of its new, energy-generating infiniTE™ ocean float using a $1 million loan from American Lending Center (ALC). The capital is backed by an 80% guarantee from the State Small Business Credit Initiative through California’s Climate Tech Finance program and administered by SBDC-OC. Climate Tech and SBDC-OC operate under the California Infrastructure and Economic Development Bank, or IBank which offers loan guarantee programs and initiatives for small businesses and entrepreneurs, particularly those operating outside of the economic mainstream.
Climate Tech Finance corroborated Seatrec’s subsea robotic power technology and its clean environmental impact for the purposes of SBDC-OC’s loan guarantee assessment process. The development corporation’s loan committee approved the guarantee deal on Dec. 28, its first under the Climate Tech program, and a first state loan guarantee deal for American Lending Center.
“We are thrilled to be able to help Seatrec move forward and broaden its impressive technology,” said SBDC-OC President Jim Ely who facilitated the Seatrec’s guarantee deal through Climate Tech Finance. “It is inspiring to know that the company assisted by our efforts is making inroads in oceanic research and sea-based industrial activities, and that our work will also have an economic impact through sustaining and creating jobs.”
Said Michael Ocasio, SBDC-OC’s chief executive officer, “We are excited to fulfill our first Climate Tech Finance transaction. This program is a game-changer and holds much potential to help scientist entrepreneurs further develop inventions that will increase our quality of life, and we look forward to being a part of the process as they pursue success.”
Climate Tech Finance is a unique partnership established in 2018 between the Bay Area Air Quality Management District and IBank for the purpose of bolstering development of greenhouse gas-reducing technologies and clean industry in California. SBDC-OC, a public benefit nonprofit established in 2001, is one of seven IBank financial development corporations which administer state loan guarantees and other economic development initiatives around California.
Dr. Yi Chao founded Seatrec in 2016 upon core technology he developed during a career at NASA’s Jet Propulsion Laboratory. Using patented technology, Seatrec’s oceanic robots harness energy from fluctuating oceanic temperatures to provide renewable, clean electricity for powering oceanographic research equipment such as floats, gliders, and Autonomous Underwater Vehicles, or AUVs. Seatrec’s technology is being used by researchers to assist in monitoring whales and mapping the ocean floor, among other things. The company also supports equity in oceanic research by sponsoring underrepresented oceanographers.
American Lending Center, a private lender based in Irvine, has a strong partnership with SBDC-OC, offering both federal and state financing programs. Larry Trujillo, senior advisor at ALC and board member at SBDC-OC, highlighted the shared values and mission of both organizations in supporting disadvantaged business owners. He also emphasized the economic advantages of the loan, with ALC's investment further secured by the 80% guarantee.
"Participating in Climate Tech Finance opens doors for lenders to invest in promising clean tech companies early on," Trujillo said. "This program allows us to support innovative businesses that might otherwise be considered too risky."
