SAFE-BIDCO

Last updated
State Assistance for Enterprise, Business and Industrial Development Corp
SAFE-BIDCO
Company typeNon-depository lender
IndustryFinancial services
Founded1981;45 years ago (1981)
Founder California State Legislature
DefunctSeptember 18, 2017 (2017-09-18)
FateSeized and liquidated
Headquarters
Santa Rosa
,
United States
Area served
California
Key people
Mary Jo Dutra (CEO, noted in reports)
ProductsSmall business loans, state loan guarantees
ServicesFinancing for alternative energy equipment, farm loans
OwnerState 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. [4] [5]

Contents

History

SAFE-BIDCO was established in 1981 to provide loans to small businesses for the purpose of manufacturing or purchasing alternative energy equipment. [6]

In 1986 its mandate was expanded to include non-energy-related loans to minority owned small businesses or exporting companies. [7]

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. [8]

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." [9]

On September 15, 2017, the state Department of Business Oversight ordered the seizure of SAFE-BIDCO, [4] announced plans to liquidate the state-chartered nonprofit, and appointed Robb Evans as Special Commissioner. [10]

On September 18, 2017, the state Department of Business Oversight seized SAFE-BIDCO. [5]

References

  1. ↑ "CAL. FIN. CODE § 32301 : California Code - Section 32301". findlaw.com. Retrieved 8 August 2014.
  2. ↑ "Banking: SAFE-BIDCO expands ag lending – North Bay Business Journal - North San Francisco Bay Area, Sonoma, Marin, Napa counties - Archive". northbaybusinessjournal.com. Retrieved 2014-04-29.
  3. ↑ "City of Anaheim - Low-Interest Energy Efficiency Loan Program". anaheim.net. Retrieved 2014-04-29.
  4. 1 2 "Order Taking Possession of Property and Business" (PDF).
  5. 1 2 "State seizes SAFE-BIDCO, will liquidate Santa Rosa lender". Santa Rosa Press Democrat. 2017-09-18. Retrieved 2017-10-20.
  6. ↑ Kolanowski, Bernard (2011). Small-scale Cogeneration handbook. Fairmont Press. p. 75. ISBN   9780881736632.
  7. ↑ "An Evaluation of the State's Alternative Energy Finance Progralll (SAFE-BIDeD)" (PDF). California Legislative Analyst's Office. January 1989. Retrieved 8 August 2014.
  8. ↑ "Small business lending: local forum on Thursday". napavalleyregister.com. Retrieved 2014-04-29.
  9. ↑ "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" (PDF).
  10. ↑ "Certificate of Appointment" (PDF).
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