Comment Log Display

To: Chairman Mary Nichols
RE: AQIP 2013- 2014                                                
                                                    
Date: July 24, 2013

Crossroads Equipment Lease and Finance is a home grown, California
based finance and leasing company based in Rancho Cucamonga. We
specialize in providing commercial capital for heavy duty truck and
tractor purchases. Over the past 4 years Crossroads has worked hard
to help California based operators secure clean equipment ahead of
regulatory requirements using an array of available programs to
help offset the tremendous costs associated with heavy duty
equipment upgrades. Despite the tightest commercial credit market
in recent history, our participation in the Providing Loan
Assistance for California Equipment (PLACE) program in the
California Capital Access Program (CalCAP) has provided the
opportunity for over 1000  trucking fleets in California to access
affordable financing for clean equipment purchases. 
To date, Crossroads has enrolled over 1135 loans into the
PLACE/CalCAP program, this represents close to 40% of all on-road
PLACE/CalCAP loans that have been issued since 2009. Fleets who
would not have otherwise qualified for financing were able to
access the needed capital for equipment purchases required by state
law.  If the PLACE program did not exist, it is likely that these
fleets would not have been able to purchase the equipment. Because
of the program, many small, minority owned businesses have been
able to purchase equipment ahead of compliance schedules while
simultaneously building their commercial credit history. 
Small businesses in California, especially trucking companies, are
the economic engines of this great state. In 2012, the treasurer’s
office estimates that close to 300 jobs were created and over 1,500
jobs were retained from loans enrolled into the on-road PLACE
program. These jobs are a direct result of the foresight and
leadership of CARB in setting up the program through the Pollution
Control Finance Authority in 2009. Thousands of California families
and small business owners have benefitted from the existence of
PLACE, while thousands more are still facing expensive upgrade
requirements under the on-road truck and bus rule at the end of
this year. The PLACE program uses state support to help operators
get into newer, clean equipment ahead of the deadlines. To date, it
is estimated that the program has helped reduce particulate matter
emissions by one ton per day and oxide of nitrogen emissions (NOx)
by 4.5 tons per day ahead of regulatory requirements under the
on-road truck and bus rule. 
Currently, the PLACE program is running out of money for new
enrollments. It is understood that the program will be exhausted
unless additional capital is allocated to bring in new loans.
Although the $2 million dollars currently earmarked for the program
is a needed gesture, more funds are desperately needed if the
program is to continue. 
Crossroads has direct understanding of the trucking industry’s
unmet needs; we respectively request that CARB allocate additional
funding to help sustain the PLACE program to assist the thousands
of small businesses who need access to financing that they cannot
secure on their own. With additional enrollees, additional
emissions reductions will be achieved and the California businesses
that need help the most will continue to thrive and grow. Please
support additional funds for PLACE, California needs it. 

Sincerely,



Matt Schrap
VP Government Programs
Crossroads Equipment Lease and Finance