SAFE-BIDCO explained

State Assistance for Enterprise, Business and Industrial Development Corp
Trade Name:SAFE-BIDCO
Type:Non-depository lender
Industry:Financial services
Founder:California State Legislature
Fate:Seized and liquidated
Hq Location City:Santa Rosa
Hq Location Country:United States
Area Served:California
Key People:Mary Jo Dutra (CEO, noted in reports)
Products:Small business loans, state loan guarantees
Services:Financing for alternative energy equipment, farm loans
Owner:State of California

State Assistance for Enterprise, Business and Industrial Development Corp, better known as SAFE-BIDCO, was a United States non-depository lender set up by the California State Legislature for financing of small business loans in California.[1] SAFE-BIDCO was based in Santa Rosa, California[2] [3] until its closure in September, 2017.

History

SAFE-BIDCO was established in 1981 to provide loans to small businesses for the purpose of manufacturing or purchasing alternative energy equipment.[4]

In 1986 its mandate was expanded to include non-energy-related loans to minority owned small businesses or exporting companies.[5]

In 1997, the organization expanded its mandate to serve State Loan Guarantees to Northern California. In 2011, SAFE-BIDCO was authorized to use state loan guarantee trust fund capital to help secure farm loans, guaranteed by the USDA.[6]

In April, 2017, the State Auditor released a report warning SAFE-BIDCO was at high risk of insolvency. The report also noted, "Despite its declining financial position, SAFE-BIDCO has imprudently spent its limited funds on questionable items such as continuing with a business development contractor that did not meet his performance milestones for several years. Additionally, during fiscal years 2011–12 through 2015–16, SAFE-BIDCO's chief executive officer Mary Jo Dutra made 16 out-of-state trips and one international trip to Ireland."[7]

On September 15, 2017, the state Department of Business Oversight ordered the seizure of SAFE-BIDCO,[8] announced plans to liquidate the state-chartered nonprofit, and appointed Robb Evans as Special Commissioner.[9]

On September 18, 2017, the state Department of Business Oversight seized SAFE-BIDCO.[10]

External links

Notes and References

  1. Web site: CAL. FIN. CODE § 32301 : California Code - Section 32301 . findlaw.com. 8 August 2014.
  2. Web site: Banking: SAFE-BIDCO expands ag lending – North Bay Business Journal - North San Francisco Bay Area, Sonoma, Marin, Napa counties - Archive. northbaybusinessjournal.com. 2014-04-29.
  3. Web site: City of Anaheim - Low-Interest Energy Efficiency Loan Program. anaheim.net. 2014-04-29.
  4. Book: Kolanowski, Bernard. Small-scale Cogeneration handbook. 2011. Fairmont Press. 75. 9780881736632.
  5. Web site: An Evaluation of the State's Alternative Energy Finance Progralll (SAFE-BIDeD). January 1989. California Legislative Analyst's Office. 8 August 2014.
  6. Web site: Small business lending: local forum on Thursday. napavalleyregister.com. 2014-04-29.
  7. Web site: At Risk of Insolvency, It Needs Increased Oversight if It Is to Receive State Funding and Continue to Help Small Businesses in California Gain Financing.
  8. Web site: Order Taking Possession of Property and Business.
  9. Web site: Certificate of Appointment.
  10. News: State seizes SAFE-BIDCO, will liquidate Santa Rosa lender. 2017-09-18. Santa Rosa Press Democrat. 2017-10-20.

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