MoFo Assists Case Force in Implementing $ 1 Billion California Reconstruction Fund; Includes 778 funded loans totaling US $ 50 million to small businesses – Finance and Banking
United States: MoFo Assists Case Force in Implementing $ 1 Billion California Reconstruction Fund; Includes 778 funded loans totaling US $ 50 million to small businesses
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To help California small businesses overcome the long-term impact of the COVID-19 pandemic, the California Small Business Enterprise Task Force (“CASE Force”), a public-private consortium of legal, financial and nonprofit professionals lucrative, established the US $ 1 billion California Rebuilding Fund (the “Fund”). A MoFo team led the development and implementation of the Fund, a public-private partnership loan program designed to support small California businesses, particularly those located in economically disadvantaged and historically underbanked areas of the United States. State.
Since its inception, the Fund has raised more than $ 106 million, and CASE Force members continue to raise additional capital from philanthropists and lending institutions. The Fund has provided vital financial resources to California’s most vulnerable small businesses. As of October 18, 2021, MoFo lawyers have donated over 5,000 pro bono hours to CASE Force and the Fund. To date, nearly 800 California small businesses have received loans financed through the Fund totaling US $ 50 million, including:
- 40% of funded loans to women-owned businesses;
- 46% of loans granted to entrepreneurs of color; and
- 62% of loans to businesses owned by women or people of color.
Co-founded by MoFo partner Suz Mac Cormac in partnership with All Home, CASE Force was a collaboration formed at the start of the pandemic to meet the needs of the state’s smallest businesses. CASE Force’s initial efforts included developing a comprehensive COVID-19 resource guide and weekly live office hours led by MoFo lawyers and business advisors from the Northern California Small Business Development Center (“SBDC “) to resolve legal issues for California businesses with 50 or fewer employees, as well as non-profit organizations. During the early stages of the pandemic, office hours mainly dealt with issues of Paycheck Protection Program (“PPP”) loans and the Law on Aid, Relief and Economic Security against Payrolls. coronavirus (“CARES Act”). In the summer of 2020, concerns during office hours shifted to issues of tax, unemployment and bankruptcy, and it became clear that small businesses needed financial support to withstand the pandemic. This led to the creation of the Fund.
Launched in November 2020, the Fund draws capital from private, philanthropic and public sector resources, including a US $ 25 million anchor commitment and a US $ 50 million guarantee allocation from the California Infrastructure and Economic Development Bank (“IBank”) to smaller businesses in California. through community development finance institutions (“CDFIs”). The Fund provides low-interest loans to businesses with no more than 50 employees and to those that earned up to $ 2.5 million in gross revenue in 2019.
Visit the California Rebuilding Fund and CASE Force to learn more.
Due to the generality of this update, the information provided here may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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