Connecticut House Bill HB05501

Connecticut 2010 Regular Session

• Introduced: 3/11/10
• Refer: 3/11/10
• Report Pass: 3/23/10

Caption

An Act Concerning The S.a.f.e. Act 2009.

Impact

The bill is expected to have a significant impact on state banking laws by creating a structured funding mechanism that directly benefits small and mid-size businesses. This is particularly critical as it enables the local banking system to provide more robust financial support to smaller enterprises, which are often underfunded. By facilitating easy access to funds, this fund is also designed to stimulate local economies through increased lending activities and potentially job creation, contributing to a more resilient economic environment in the state.

Summary

House Bill 5501, also known as the S.A.F.E. Act 2009, aims to establish a 'State Assisted Fund and Exchange Fund' to provide secondary market capital liquidity specifically for state-chartered banking institutions. This initiative intends to support the origination of credit loans for small and mid-size businesses, thereby fostering economic development within the state. The fund will also cover the necessary expenses incurred by the Commissioner of Economic and Community Development when managing these operations. It signifies a legislative move towards enhanced support for local banking systems in the wake of economic challenges.

Sentiment

Overall, the sentiment surrounding HB 5501 appears to be largely supportive, particularly among those advocating for small business development and economic revitalization. Proponents argue that this legislation drives essential liquidity into local financial institutions, helping them to better serve small businesses that form the backbone of the state's economy. However, there are voices of caution regarding oversight and the effective utilization of the funds provided, stressing the importance of demonstrating accountability in how the allocated resources are managed.

Contention

Notable points of contention include the structure of the State Assisted Fund and Exchange Committee, which will oversee the smooth operation of the fund. Some legislators expressed concerns about potential bureaucratic delays and the effectiveness of fund distribution, cautioning that without stringent guidelines, the fund’s intended benefits might not reach those most in need. The bill’s framework for authorizing bond issuance also drew scrutiny, particularly surrounding the conditions under which federal funding would become available, thus necessitating a careful balance between state initiatives and reliance on external resources.