Connecticut Senate Bill SB00914

Connecticut 2011 Regular Session

• Introduced: 2/7/11
• Refer: 2/7/11

Caption

An Act Establishing A Micro-loan Program For Veterans.

Impact

The implementation of SB00914 would have a significant impact on state laws regarding business support and financing. It establishes the 'Micro-Loan Revolving Fund for Veteran-Owned Businesses', which would consist of state-allocated funds and other revenues to ensure sustainability. As such, it aims not only to assist veterans but also encourages local economic growth by enabling veteran entrepreneurs to thrive in their ventures. Each loan provided under this act would be subject to specific limits, aimed at minimizing fiscal risk while still supporting the entrepreneurial spirit among veterans.

Summary

SB00914, introduced in the General Assembly, seeks to establish a micro-loan program specifically designed to support veteran-owned businesses. This legislation authorizes the commissioner of economic and community development to partner with quasi-public agencies, financial institutions, and nonprofit organizations to administer and promote the micro-loan program throughout the state. The program is intended to provide financial assistance for business startup costs and day-to-day operations, ensuring that veteran entrepreneurs have access to necessary capital without the burden of exorbitant interest rates, as it allows for interest-free or deferred loans.

Contention

While the bill is generally supported as a means of providing resources to a deserving population, some stakeholders may express concern about the adequacy of the financial resources allocated to the program. There could be debates surrounding the eligibility criteria for the businesses applying for loans, specifically regarding what constitutes a 'veteran-owned business' and whether the thresholds established are sufficient to meet the needs of this demographic. Moreover, the requirement for businesses to participate in a management training program may raise questions about the accessibility of these services for all veterans, particularly those who are new to entrepreneurship.