Connecticut House Bill HB05276

Connecticut 2014 Regular Session

• Introduced: 2/20/14
• Refer: 2/20/14
• Report Pass: 3/11/14
• Refer: 3/20/14
• Report Pass: 3/26/14
• Refer: 4/4/14

Caption

An Act Concerning Supplemental Funding Under The Preseed Financing Program.

Impact

If enacted, HB 5276 would strengthen state support for startups and small businesses by ensuring that available funds for initiatives like preseed financing are earmarked and accessible. This could lead to an increase in innovation and technological development within the state as businesses leverage state resources to grow and commercialize their ideas. Notably, the bill mandates that for every dollar of financial assistance requested, businesses must demonstrate a ratio of private investment, thereby promoting private-sector involvement in local economic development.

Summary

House Bill 5276, titled 'An Act Concerning Supplemental Funding Under The Preseed Financing Program,' seeks to enhance funding for the preseed financing initiative aimed at supporting eligible Connecticut businesses. The bill proposes establishing a nonlapsing account within the General Fund, designated specifically for the purpose of providing financial assistance to help businesses develop proof of concepts and related support services. The maximum financial assistance under the program is set at $150,000 per business, contingent on the business meeting certain eligibility criteria, including the requirement for private investment.

Sentiment

The general sentiment surrounding HB 5276 is positive, reflecting a bipartisan recognition of the importance of funding for emerging businesses. Legislators and business advocates are likely to view this initiative favorably, as it aligns with broader objectives of fostering economic growth and job creation in Connecticut. However, there may be reservations among some stakeholders concerning the adequacy of funding and the criteria established for eligibility, which could potentially limit access for some businesses.

Contention

A point of contention within the discussions could revolve around the extent to which the financial assistance is distributed and the eligibility criteria for businesses. While proponents argue that the conditions for funding, such as requiring private investment, are beneficial in ensuring that only serious candidates receive support, critics may contend that such stipulations could exclude smaller or newer businesses that do not yet have ample private capital backing. This could limit the bill's effectiveness in truly reaching all segments of the entrepreneurial ecosystem within Connecticut.