California § 44558.3 - Prior to receiving any grant funds under this program, an applicant selected by t

§ 44558.3. Prior to receiving any grant funds under this program, an applicant selected by t

(a) Prior to receiving any grant funds under this program, an applicant selected by the authority to participate in the program shall enter into a grant agreement with the authority that requires the applicant to do all of the following: (1) Achieve specific goals related to capacity building described in subdivision (b). (2) Provide information requested by the authority to support administration of the program. (3) Comply with terms and conditions imposed by the authority. (b) Unless otherwise prohibited by law, an eligible applicant that receives grant funds under the program may use those funds for either or both of the following purposes: (1) (A) To increase total net assets for the purpose of increasing the eligible applicant’s capacity to attract additional financing that the applicant uses to fund loans, loss reserves, or other means of finance for any of the following: (i) Commercial facilities that promote revitalization, community stability, or job creation or retention. (ii) Businesses that provide jobs for low-income persons, are owned by low-income persons, or increase the availability of products and services to low-income persons. (iii) Facilities providing health care, childcare, educational, cultural, or social services. (iv) The provision of checking, savings accounts, check cashing, money orders, certified checks, automated teller machines, deposit taking, safe deposit box services, and other similar services. (v) Development, preservation, or renovation of affordable housing. (vi) Credit building consumer loans with charges that do not exceed the amounts allowed by Sections 22304.5 and Section 22370 of the Financial Code. (B) For purposes of this section, “total net assets” means the amount of total assets minus total liabilities, as disclosed in an audited financial statement prepared according to generally accepted accounting principles. (2) To increase working capital for the purpose of funding services and operations that contribute to the overall community development mission of the eligible applicant, including technical assistance, technology, training, and other activities that benefit low-income neighborhoods, undercapitalized business owners, and other socially and economically disadvantaged individuals. (c) If a grantee is licensed pursuant to any division of the Financial Code and the grantee loses its license, the grant shall be forfeited and returned, in total, to the authority.