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.
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]