Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 22-0942.01 Megan Waples x4348
HOUSE BILL 22-1328
House Committees Senate Committees
Business Affairs & Labor Finance
Finance Appropriations
Appropriations
A BILL FOR AN ACT
C
ONCERNING MODIFI CATIONS TO THE "COLORADO LOANS FOR101
I
NCREASING MAIN STREET BUSINESS ECONOMIC RECOVERY102
A
CT".103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill adjusts various requirements applicable to the "Colorado
Loans for Increasing Main Street Business Economic Recovery Act"
(program) that provides small business recovery loans to Colorado
businesses, funded in part through the sale of premium tax credits. The
bill:
SENATE
2nd Reading Unamended
May 10, 2022
HOUSE
3rd Reading Unamended
May 5, 2022
HOUSE
2nd Reading Unamended
May 4, 2022
HOUSE SPONSORSHIP
Titone and McLachlan, Amabile, Bernett, Esgar, Froelich, Herod, Hooton, Jodeh, Kipp,
Lindsay, McCormick, Valdez D.
SENATE SPONSORSHIP
Donovan,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. ! Extends the period through which the program can issue
capital for the loan program through fiscal year 2023-24;
! Increases the amount of capital that can be issued in the last
3 fiscal years without increasing the total amount that can
be issued for the life of the program;
! Lowers the minimum amount of a loan to a small business
from $30,000 to $10,000;
! Lengthens the maximum initial maturity of a loan to a
small business from 5 years to 10 years;
! Changes the requirements for an eligible borrower to
require one year of positive cash flow instead of 2, and at
least one employee instead of at least 5 employees;
! Clarifies the benchmarks that apply to the program for
making loans to businesses owned by socially and
economically disadvantaged individuals;
! Extends the time for the program to issue tax credits
through state fiscal year 2022-23;
! Allows tax credits issued in fiscal years 2021-22 and
2022-23 to be claimed on a schedule beginning in a taxable
year that begins on or after January 1, 2023; and
! Removes a requirement that if additional state or federal
money is appropriated or allocated to the program, the
value of the tax credits authorized by the program must be
reduced by the same amount.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-36-203, amend2
(4)(b) and (4)(c) as follows:3
24-36-203. Definitions. As used in this part 2, unless the context4
otherwise requires:5
(4) "Eligible borrower" means a business that, as determined by6
the oversight board:7
(b) Has at least five
ONE but fewer than one hundred employees;8
(c) Can demonstrate that it had at least two consecutive years ONE9
YEAR of positive cash flow prior to February 29, 2020 AS DETERMINED BY10
THE OVERSIGHT BOARD; and11
1328-2- SECTION 2. In Colorado Revised Statutes, 24-36-205, amend1
(3)(a)(II), (3)(b), (4)(a), (4)(b) introductory portion, (4)(b)(I), (4)(b)(II),2
and (4)(d) as follows:3
24-36-205. Small business recovery loan program - creation -4
requirements - oversight. (3) (a) Notwithstanding any restriction on the5
investment of state money set forth in section 24-36-113 or in any other6
provision of law, subject to the availability of money in the small business7
recovery fund and the requirements of this part 2:8
(II) Subject to the limitations in subsection (3)(b) of this section,9
in fiscal year YEARS 2021-22, 2022-23, AND 2023-24, the state treasurer10
may provide up to thirty A TOTAL OF FORTY million dollars in first loss11
capital to a loan program or programs or to the Colorado credit reserve12
from the small business recovery fund.13
(b) The money provided under this subsection (3) must be14
provided in tranches of ten million dollars or less, up to a maximum15
amount of fifty million dollars in all tranches combined across fiscal years16
2020-21 and 2021-22 THROUGH 2023-24. The state treasurer shall not17
provide a tranche to a loan program or to the Colorado credit reserve until18
at least ninety percent of the money in any prior tranche has been invested19
in small business loans in accordance with subsection (4) of this section,20
as determined by the oversight board and certified by the loan program21
manager. Money provided to the Colorado credit reserve is considered22
invested in small business loans for the purposes of this subsection (3)(b)23
once it is paid to the Colorado housing and finance authority.24
(4) Any contract for the administration of a loan program must25
include the following terms in order to receive money provided by the26
state treasurer pursuant to subsection (3) of this section:27
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-3- (a) Except for money contributed to the Colorado credit reserve,1
the money provided by the state treasurer in a single tranche shall not be2
committed pursuant to a contract relating to a loan program until money3
is committed pursuant to a contract relating to a loan program from other4
sources at a ratio of
AT LEAST four dollars from other sources for each one5
dollar provided by the state. If a loan program manager does not secure6
sufficient investments from other sources to meet this requirement within7
the time allowed by a contract, the money provided by the state shall be8
returned to the small business recovery fund.9
(b) Except for money contributed to the Colorado credit reserve,10
once the money in a tranche is matched in accordance with subsection11
(4)(a) of this section, it must be used to make loans or purchase12
participation interest in loans for working capital,
INCLUDING THE13
PURCHASE OF EQUIPMENT, to eligible borrowers, or other activities that14
accomplish the same purpose. The oversight board shall consult with15
lending industry leaders and representatives of small businesses with16
regard to subsections (4)(b)(I) to (4)(b)(VI) of this section. Each loan17
must be subject to the following terms:18
(I) The loan must be in an amount of at least thirty
TEN thousand19
dollars but not more than five hundred thousand dollars, as determined by20
the oversight board;21
(II) The loan must have a maximum initial maturity of five UP TO22
TEN years, based on the need of the eligible borrower, with no penalty for23
prepayment, as determined by the oversight board. The originating lender24
may extend the term for purposes of restructuring the loan.25
(d) (I) A loan program manager shall make every effort to achieve26
targets BENCHMARKS published by the oversight board pursuant to section27
1328
-4- 24-36-204 (8)(d) for the percentage of loans supported by the program1
that are made to businesses owned by
SOCIALLY AND ECONOMICALLY2
DISADVANTAGED INDIVIDUALS , INCLUDING BUSINESSES OWNED BY3
women, minorities, and veterans and to businesses located in rural4
counties. A loan program manager shall consult with the minority5
business office within the office of the governor and the division of6
business funding and incentives within the office of economic7
development to develop an outreach strategy for marketing the loan8
program to businesses owned by women, minorities, and veterans and9
businesses located in rural counties.10
(II) For money contributed to the Colorado credit reserve, the11
oversight board may waive the requirements of this subsection (4)(d) or12
may establish alternative targets
BENCHMARKS for the percentage of loans13
supported by the program that are made to businesses owned by
SOCIALLY14
AND ECONOMICALLY DIS ADVANTAGED INDIVIDUALS , INCLUDING15
BUSINESSES OWNED BY women, minorities, and veterans and to businesses16
located in rural counties.17
SECTION 3. In Colorado Revised Statutes, 24-36-206, amend18
(2)(b) and (9)(a) introductory portion as follows:19
24-36-206. Small business recovery tax credits - authorization20
to issue - terms - report. (2) (b) The department is authorized to issue21
tax credit certificates to qualified taxpayers equal to the lesser of a22
COMBINED total face value of up to twenty-eight million dollars or23
COMBINED total sales proceeds of up to twenty-one million dollars in24
fiscal year 2021-22; except that, if money received by the state from the
25
federal government has been appropriated, transferred, or allocated to the26
fund for the purposes of this part 2, the value of the tax sales proceeds27
1328
-5- that the department is authorized to raise under this subsection (2)(b) in1
fiscal year 2021-22 is reduced by the amount of federal money2
appropriated, transferred, or allocated by the fund YEARS 2021-22 AND3
2022-23.4
(9) (a) The department shall provide a report to the division of5
insurance in the department of regulatory agencies for each fiscal year in6
which it issues tax credit certificates pursuant to this part 2 within thirty7
days of AFTER the close of the fiscal year ISSUANCE OF THE CREDITS. The8
report must include:9
SECTION 4. In Colorado Revised Statutes, 24-36-207, amend10
(2) and (3) as follows:11
24-36-207. Use of small business recovery tax credits - carry12
over. (2) For a tax credit certificate issued in fiscal year 2021-22
OR13
FISCAL YEAR 2022-23:14
(a) The qualified taxpayer may claim
UP TO FIFTY PERCENT OF the15
credit against premium tax liability incurred for a taxable year that begins16
on or after January 1, 2027
JANUARY 1, 2023; except that a taxpayer may17
not reduce its estimated tax payments in proportion to such credit prior to18
July 1, 2027 JULY 1, 2023; AND19
(b) T
HE QUALIFIED TAXPAYER MAY CLAIM THE REMAINING20
AMOUNT OF THE CREDIT AGAINST PREMIUM TAX LIABILITY INCURRED FOR21
A TAXABLE YEAR THAT BEGINS ON OR AFTER JANUARY 1, 2024; EXCEPT22
THAT A TAXPAYER MAY NOT REDUCE THE TAXPAYER 'S ESTIMATED TAX23
PAYMENTS IN PROPORTION TO SUCH CREDIT PRIOR TO JULY 1, 2024.24
(3) (a) The total credit to be applied by a qualified taxpayer in any25
one year must not exceed the premium tax liability of the qualified26
taxpayer for the taxable year. If the qualified taxpayer cannot use the27
1328
-6- entire amount of the tax credit for the taxable year in which the taxpayer1
is eligible for the credit, the excess may be carried over to succeeding2
taxable years and used as a credit against the premium tax liability of the3
taxpayer for those taxable years; except that:4
(I) F
OR A CREDIT ISSUED IN FISCAL YEAR 2020-21, the credit may5
not be carried over to any taxable year that begins after December 31,6
2031;
AND7
(II) F
OR A CREDIT ISSUED IN FISCAL YEAR 2021-22 OR 2022-23,8
THE CREDIT MAY NOT BE CARRIED OVER TO ANY TAXABLE YEAR THAT9
BEGINS AFTER DECEMBER 31, 2029.10
(b) Any amount of the credit that is not timely claimed expires and11
is not refundable.12
SECTION 5. In Colorado Revised Statutes, 24-36-208, amend13
(4), (5), and (6) as follows:14
24-36-208. Small business recovery fund - repeal.15
(4) Beginning in fiscal year 2025-26
YEAR 2027-28, the state treasurer16
shall credit any unexpended and unencumbered money remaining in the17
fund at the end of a fiscal year to the general fund.18
(5) The state treasurer shall transfer all unexpended and19
unencumbered money in the fund at the end of the fiscal year on June 30,20
2029 JUNE 30, 2037, to the general fund.21
(6) This section is repealed, effective July 1, 2029 JULY 1, 2037.22
SECTION 6. In Colorado Revised Statutes, amend 24-36-210 as23
follows:24
24-36-210. Repeal of part. This part 2 is repealed, effective25
December 31, 2033 DECEMBER 31, 2040.26
SECTION 7. Safety clause. The general assembly hereby finds,27
1328
-7- determines, and declares that this act is necessary for the immediate1
preservation of the public peace, health, or safety.2
1328
-8-