Cal. Financial Code - FIN § 31020. Section 31020.
The Legislature finds all of the following:
(a)
That it is necessary to increase job opportunities in this state.
(b)
That promoting the establishment, growth, and expansion of business firms in this state is an efficient way to increase job opportunities in this state.
(c)
That it is appropriate to provide for the licensing and regulation of business and industrial development corporations which will provide financing assistance and management assistance
primarily to business firms in this state.
(d)
That the federal government, through the Small Business Administration and other federal agencies, offers programs for providing, through such intermediaries as business and industrial development corporations, financing assistance and management assistance to business firms in this state.
(e)
That, in order that this state may obtain the full benefits of such programs, it is necessary that this state provide for the licensing and regulation of business and industrial development corporations.
(f)
That only California corporations should be licensed to transact business as business and industrial development corporations because, compared with other types of persons, California corporations can be more effectively regulated and supervised, have greater permanency of
existence, and can give better assurance of uninterrupted service.