Connecticut Senate Bill SB01173

Connecticut 2011 Regular Session

• Introduced: 3/10/11
• Refer: 3/10/11
• Report Pass: 3/22/11
• Refer: 3/31/11
• Report Pass: 4/6/11
• Refer: 4/21/11
• Report Pass: 4/26/11
• Report Pass: 4/27/11
• Refer: 5/5/11
• Report Pass: 5/10/11
• Report Pass: 5/11/11
• Engrossed: 5/20/11
• Report Pass: 5/23/11
• Chaptered: 6/28/11
• Enrolled: 6/30/11
• Passed: 7/13/11

Caption

An Act Concerning Qualified Private Investments For Connecticut Innovations, Incorporated's Preseed Program.

Impact

The bill is expected to have a positive impact on the state's economic landscape by enabling Connecticut Innovations, Incorporated to offer targeted financial support for small businesses in their formative stages. With a maximum assistance cap set at one hundred fifty thousand dollars per eligible company, the preseed program aims to foster local innovation and technological advancement while ensuring that public funds are strategically invested alongside private capital. As a result, businesses that can demonstrate a firm commitment to their growth will benefit directly, potentially leading to job creation and increased economic activity in the state.

Summary

Senate Bill No. 1173, titled 'An Act Concerning Qualified Private Investments for Connecticut Innovations, Incorporated's Preseed Program,' establishes a new financial mechanism within Connecticut's General Fund to support early-stage businesses. This legislation creates a preseed financing account dedicated to providing financial assistance to eligible Connecticut businesses that meet specific criteria, including a minimum level of private investment and a significant percentage of local employment. The goal of the bill is to stimulate economic growth by helping newer companies transition from early ideas to viable products.

Sentiment

The sentiment around SB01173 appears to be favorable, particularly among proponents who see it as a necessary step toward enhancing the state's support for emerging businesses. By promoting a collaborative investment approach that leverages private funding, supporters argue that the bill will not only bolster local enterprises but also create a more vibrant entrepreneurial ecosystem. Conversely, there may be some concerns regarding access to these resources, particularly among smaller companies that might struggle to meet the investment prerequisite. Nevertheless, most discussions suggest an overall optimism about nonprofit partnerships enhancing resources for entrepreneurs.

Contention

Some notable points of contention include the eligibility requirements for businesses seeking preseed funding. Critics may argue that the stipulation for businesses to demonstrate at least fifty cents of private investment for every dollar requested could potentially limit access for startups with innovative ideas but without extensive funding. This requirement could create barriers for businesses just starting out or those in industries with longer development timelines. Overall, while SB01173 presents a forward-thinking initiative for economic development, the challenges related to eligibility requirements will warrant further discussion and consideration to ensure broad access to this financial aid.