Published: 2015-07-08
Key Benefits:
No licensee shall engage in any business other than the following:
(a) The business of providing financing assistance through the purchase of securities of small business firms or smaller business firms doing business or proposing to do business wholly or substantially in this state.
(b) The business of providing managerial assistance (including managerial and technical assistance) to small business firms or smaller business firms doing business or proposing to do business wholly or substantially in this state.
(c) At least 20 percent of all financing assistance provided by the licensee shall be through purchase of securities of smaller business firms doing business or proposing to do business wholly or substantially in this state.
(Amended by Stats. 2010, Ch. 516, Sec. 8. Effective January 1, 2011.)
No licensee shall provide financing assistance to any small business firm for the purpose of evading the requirements of this division.
(Amended by Stats. 2010, Ch. 516, Sec. 12. Effective January 1, 2011.)
This section creates and authorizes an exempt class of persons pursuant to Section 1 of Article XV of the California Constitution. The restrictions upon rates of interest contained in Section 1 of Article XV of the California Constitution shall not apply to any evidence of indebtedness purchased by any licensee.
(Added by Stats. 1998, Ch. 668, Sec. 3. Effective January 1, 1999. Operative July 1, 1999, by Sec. 4 of Ch. 668.)