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HomeFinancial CodeDiv. 15Ch. 6§ 31401 Small Business Financing Rules

§ 31401 Small Business Financing Rules

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 31401 Small Business Financing Rules

Key Takeaways

  • •This law says a company with a special license can only do certain types of business.
  • •They can help other businesses with money and advice.
  • •They can work as a special kind of company that helps small businesses grow, following specific rules.
  • •They can't do any other types of business that aren't listed here.

Example

A company has a special license to help small businesses.

This company can give money and advice to small businesses, but they can't start selling cars or making pizza. They have to stick to helping small businesses in the ways the law allows.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 31401 Small Business Financing Rules

No licensee shall engage in any business other than one or more of the following: (a) The business of providing financing assistance and management assistance to business firms. (b) The business of a state development company in accordance with all applicable provisions of the Small Business Investment Act of 1958 and of the regulations of the Small Business Administration. (c) The business of a local development company in accordance with all applicable provisions of the Small Business Investment Act of 1958 and of the regulations of the Small Business Administration. (d) The business of a small business investment company in accordance with all applicable provisions of the Small Business Investment Act of 1958 and of the regulations of the Small Business Administration. (Amended by Stats. 1987, Ch. 867, Sec. 21.)

Last verified: January 23, 2026

Key Terms

investmentdevelopmentregulationlicensesmall business administrationaccordancemanagementassistance

Related Statutes

  • § 31403 Business Financing Assistance Rules
  • § 31404 Out-Of-State Financing Restrictions
  • § 31405 Financing Assistance Restrictions
  • § 31406 Licensee Business Control Limits
  • § 31021 Business Development Corporation Licensing

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 31401.
View Official Source