State Treasurer Fiona Ma Awards First Grants from $50 million Program to Encourage Economic Development in Underserved Communities

February 1, 2024   

CVV News

SACRAMENTO – State Treasurer Fiona Ma today announced the first round of grants under the
$50 million California Investment and Innovation Program (Cal IIP) has been awarded to 63 Community Development Financial Institutions throughout California. The program is implemented by the California Pollution Control Financing Authority (CPCFA), chaired by Ma as state treasurer..

This year’s grant awards total $14.2 million and will be disbursed to CDFIs help expand economic opportunity in low-income and underserved communities by offering access to financial products and services for residents and businesses. CDFIs include credit unions, community loan funds, small business loan programs, banks, and other financial organizations.

“The Cal IIP program is a critical development tool to help California’s underserved communities overcome economic challenges and I’m thrilled to be putting this money to use,” said California State Treasurer Fiona Ma. “CDFIs support small businesses and working families, and create unique programs and services that meet the needs of their communities. I encourage everyone to seek out what programs and services their local CDFI offers.”

The California Legislature established the Cal IIP Fund in 2022 with Senate Bill 193, which committed $50 million over several years toward grant funding. The program will distribute grants of up to $15 million annually. The 2022 legislation was sponsored by Senators Anna Caballero and Monique Limón and championed by two years of advocacy efforts by the California Coalition for Community Investment, a statewide coalition of CDFIs.

al IIP highlights include:

• $5.5 million to 30 CDFIs supporting small businesses;
• $4.4 million to 21 CDFIs with affordable housing programs;
• $3.4 million to 16 CDFIs working on engaging the underbanked;
• $400,000 to two CDFIs using their award for education programs.

All qualified applicants received an award. Eligible CDFIs must be currently certified by the federal CDFI Fund and already serving California with lending and financial assistance.

Twenty percent of the funding was awarded to small and emerging CDFIs with less than $10 million in assets. The maximum grant award is $100,000. Applicants with a minimum of 10 loans in the most recent fiscal year, or that have provided financing assistance of at least $10 million in the last three fiscal years, may receive up to $100,000 in additional funding. These grants have a maximum of $200,000.

More information about Cal IIP is available at treasurer.ca.gov/cpcfa/caliip. For a list of recipients, see treasurer.ca.gov/cpcfa/caliip/awards.asp.

CPCFA provides financing options that incentivize capital investment in pollution control facilities and small businesses. The tax-exempt bond program helps businesses construct solid waste, recycling, water, and wastewater projects, while small businesses can obtain loans for start-up, expansion, and working capital through the California Capital Access Program (“CalCAP”) and Collateral Support Program. CPCFA also partners with lenders to provide loan loss reserve accounts that help finance new, cleaner-burning heavy duty diesel trucks and buses, and helps transform contaminated sites into vibrant housing and infill developments through the California Recycle Underutilized Sites Program (“CALReUSE”).

Governor Newsom Releases Balanced Revised Budget Plan

CVV News | May 15, 2023

SACRAMENTO – Governor Gavin Newsom today released his May Revision proposal, a balanced budget plan that maintains critical investments to address our biggest challenges while preparing for continued economic uncertainty due to global economic issues. The Governor’s budget closes a projected $32 billion budget shortfall while protecting key investments in the issues that matter most to Californians, including education, health care, housing and homelessness, public safety, and climate action.

Following two years of unprecedented growth, revenues have fallen short of monthly estimates since the 2022 Budget Act was enacted last June. California has planned for this potential shortfall, with the Governor and Legislature paying down the state’s prior debts, building unprecedented reserves and prioritizing one-time investments.

“In partnership with the Legislature, we have made deep investments in California and its future – transformative efforts that will benefit generations of Californians, and that this budget will continue to guide as we navigate near-term ups and downs in revenue,” said Governor Newsom. “As we prepare for more risk and uncertainties ahead, it’s critical that we keep the state on a solid fiscal footing to protect Californians and our progress in remaking the future of our state.”

With unprecedented investments over the past two state budgets, in addition to federal funding targeting infrastructure and inflation reduction, California will invest more than $180 billion over the next several years in clean energy, roads, bridges, public transit, water storage and conveyance and expanded broadband service. These investments will create hundreds of thousands of new jobs while building the infrastructure to make our state better connected, safer and more prepared for our future.

While the May Revision does not forecast a recession, it recognizes increased risks to the budget since January that could significantly change the state’s fiscal trajectory in the near term. Taking this into account, the plan reflects $37.2 billion in total budgetary reserves, including $22.3 billion in the Budget Stabilization Account.

In addition to addressing the budget shortfall, the May Revision maintains investments in key priorities for Californians. This includes:

PROTECTING HEALTH CARE ACCESS. Following Governor Newsom’s actions to expand health care access and reduce costs, the May Revision maintains billions to continue implementing these measures – programs like CalAIM to transform Medi-Cal, extending health care to low-income Californians of all ages regardless of immigration status, making insulin more affordable through CalRx, and more.

TACKLING HOMELESSNESS. Governor Newsom has invested $15.3 billion to address homelessness – up from $500 million when he took office and more than ever before in state history. The May Revision maintains billions of dollars for aid to local governments, encampment resolution grants, and more. With this funding will come new accountability – no more status quo.

INCREASING HOUSING SUPPLY. In the last four years, California invested more to increase housing supply than ever before in state history while holding local governments accountable. The state continues to deploy a comprehensive set of strategies – improving state financing, targeting housing investments, providing technical assistance, eliminating regulations, and leveraging land use tools. The state adopted a legally binding goal that local governments must plan to build approximately 2.5 million new units by 2030, and 1 million of these units must be affordable.

CALIFORNIA’S CLIMATE COMMITMENT. California is advancing a $48 billion multi-year commitment to implement its world-leading agenda to achieve carbon neutrality by 2045, protect communities from harmful oil drilling, deliver 90% clean electricity by 2035, and more. It also proposes the development of a Climate Resilience Bond to increase and sustain investments in our climate initiatives.

KEEPING CALIFORNIANS SAFE. The May Revision sustains over $800 million in record-level public safety investments, including supports for victims’ services, officer wellness and training, non-profit security grants, efforts to combat fentanyl, and more.

UNIVERSAL TRANSITIONAL KINDERGARTEN. The May Revision continues to fully fund the first and second years of expanded eligibility for TK, creating a whole new grade.

FREE MEALS FOR EVERY STUDENT. California is investing $1.6 billion for all students, regardless of income, to access two free school meals per day – up to 12 million meals per day statewide.

Additional details on the May Revision can be found at www.ebudget.ca.gov.