Connecticut Senate Bill SB00461

Connecticut 2016 Regular Session

• Introduced: 3/17/16
• Refer: 3/17/16
• Report Pass: 4/7/16
• Refer: 4/18/16
• Report Pass: 4/25/16
• Engrossed: 5/2/16
• Report Pass: 5/2/16
• Chaptered: 5/19/16
• Enrolled: 5/25/16
• Passed: 6/9/16

Caption

An Act Concerning A Small Minority Business Revolving Loan Fund.

Impact

This legislation has the potential to significantly influence state economic development laws by specifically allocating resources to minority-owned businesses. By ensuring that a portion of state funds is designated for this purpose, the bill reinforces the importance of inclusion within the state's small business ecosystem. The targeted financial assistance aims to alleviate barriers that minority entrepreneurs face in accessing capital, ultimately leading to a more diverse and robust business landscape. Moreover, it aims to stimulate job creation and retention, which is critical for local economies.

Summary

SB00461 is an act aimed at establishing a Small Minority Business Revolving Loan Fund within the Department of Economic and Community Development. The bill seeks to support small businesses owned by minority groups through the provision of loans that can be utilized for various business-related expenses such as acquiring machinery, construction, leasehold improvements, and working capital. With loan amounts ranging from $10,000 to $100,000 and a maximum repayment interest rate of 4% over a period of up to ten years, the intention behind the fund is to bolster economic growth and job retention within minority communities. The act also emphasizes job creation, giving priority to applications that propose job growth as part of their business plan.

Sentiment

The sentiment surrounding SB00461 appears to be largely positive, particularly among proponents who advocate for minority rights and economic equality. Supporters argue that this fund is a necessary initiative to address systemic disparities that have historically limited the growth of minority-owned businesses. However, there may also be some contention from opposition groups who might argue about the effectiveness of targeted financial assistance or the long-term sustainability of such a fund. Overall, the measure has been largely welcomed as a step towards addressing economic injustices.

Contention

There are notable points of contention regarding the bill, mostly revolving around the criteria for loan eligibility and the prioritization of funds. Some critics may express concern about whether such a focused approach adequately serves the larger community of small businesses beyond just minority owners, particularly those located in economically distressed areas. Additionally, discussions may also arise about the sufficiency of oversight and evaluation of the loan awards to ensure they are achieving the intended outcomes, such as job creation and business sustainability.