An Act Authorizing The State Treasurer To Purchase The Guaranty Of Certain Loans.
If enacted, SB 00282 would amend Chapter 66 of the general statutes, significantly impacting state financial regulation relating to the use of the State Employees Retirement Fund. The bill underscores a commitment to aiding small businesses, which are often seen as the backbone of the economy. By acting as a guarantor for SBA loans, the state could improve lending confidence among banks, potentially lowering interest rates and making loans more accessible. This could lead to increased small business activity, fostering job creation and economic resilience in Connecticut.
Senate Bill 00282, introduced by Senator Suzio, focuses on economic development by enabling the State Treasurer to utilize funds from the State Employees Retirement Fund to purchase guarantees for certain federal Small Business Administration (SBA) loans. The bill seeks to enhance the availability of capital to small businesses in Connecticut, thereby supporting local economic growth and job creation. Specifically, it authorizes up to one billion dollars for this purpose starting from July 1, 2017. The main aim of the bill is to ensure that small businesses can access the financial support necessary to thrive and expand, particularly in challenging economic climates.
Despite its supporters who champion the bill for its potential economic benefits, there may be concerns regarding the financial implications and risk involved in utilizing retirement funds for loan guarantees. Critics may argue that such actions could threaten the stability and integrity of the State Employees Retirement Fund, raising questions about financial accountability and risk management. Additionally, discussions could arise over the selection process for which loans to guarantee and whether such a system prioritizes fairness and equality among small businesses.
The voting history for SB 00282 will likely reflect diverse opinions among legislators, with proponents advocating for small business support and economic expansion, while opponents may express concerns about fiscal responsibility and the broader implications of using public funds for loan guarantees. Monitoring the legislative discussions will provide insights into the varying perspectives regarding the bill and its projected impacts.