The Program targets investments of $5 – $10 million in high-quality, cash flow-positive companies with a nexus to California. The investments are typically structured as subordinated debt or equity with pricing and terms reflective of current market conditions. The Program aims to achieve reasonable risk-adjusted returns while encouraging the development and growth of California businesses. No assurance can be given that the Program will achieve this objective.

California criteria:

• California-based companies or
• Have more of their employees reside or work in California than in any other state or
• Have more facility locations in California than in any other state

Operational criteria:

• Defensible market position and sound reputation with customers, suppliers and employees
• Strong and talented management team
• Strong financial performance and stable, predictable cash flows
• Thorough and adequately capitalized business plan with clearly defined growth strategy