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Policy and California's Economy (PACE) Briefing Series: Removing Barriers to Small Business Lending

Aug 31, 2015

Matt Horton


The Milken Institute California Center collaborated with the Small Business Administration’s Los Angeles office, the Federal Reserve Bank of San Francisco, and the co-chair of the California Economic Summit’s Capital Action Team to assemble a group of banking executives, community leaders and policymakers to develop a scalable model for a revolving small business loan fund at either the regional or state level.

The topic for this roundtable was generated from recommendations for expanding small business lending made during previous Policy and California's Economy (PACE) roundtables. Those discussions emphasized the need to resolve the risk barriers associated with smaller loans and address economy-of-scale issues in community-based lending. One idea focused on a regional and/or state loan fund that could coalesce risk, clear technical and geographic hurdles and ultimately spur small business growth. To establish and implement an effective funding tool. In terms of providing initial structure to a loan fund, the conversation was divided into three themes: technical assistance and analysis, capital coordination, and risk mitigation.