Connecticut House Bill HB07224

Connecticut 2017 Regular Session

• Introduced: 3/2/17
• Refer: 3/2/17

Caption

An Act Concerning Rental Assistance For Start-ups Through The Small Business Express Program.

Impact

The addition of the rental assistance grant is expected to significantly strengthen support for small businesses, particularly those at the start-up phase that may struggle with cash flow. This change reflects a broader recognition of the vital role that small enterprises play in economic recovery and job creation. Within this legislative framework, priority will be given to businesses demonstrating a potential for growth and job creation, thereby aligning the assistance program with the state’s economic development objectives.

Summary

House Bill 07224 aims to enhance the Small Business Express Program by introducing a rental assistance grant component specifically designed for start-up businesses. This component provides newly established small businesses with assistance in covering their commercial rent for a maximum of 12 months. The initiative allows businesses that have been registered for less than one year to qualify, seeking to ease financial burdens and foster growth during critical early stages of operation. Notably, the rental assistance is capped at $2,000 per month, with an overall annual limit for the program set at $500,000.

Contention

While the bill is largely met with support as it aims to empower small businesses, there may be concerns regarding the administrative feasibility and the sustainability of funding for the rental assistance grants. Critics could question whether the annual limit of $500,000 is sufficient to meet the needs of all applicants, especially in high-demand economic areas. Furthermore, the requirement for newer businesses to maintain job growth as a qualifying factor for assistance may generate discussions regarding the viability of job retention in the initial stages of a business.