Connecticut House Bill HB05277

Connecticut 2018 Regular Session

• Introduced: 2/28/18
• Refer: 2/28/18

Caption

An Act Eliminating Loan Forgiveness From The Small Business Express Program.

Impact

The implications of this legislation on state laws include an increased burden on small businesses that may have relied on the possibility of loan forgiveness to incentivize job creation and economic growth. By removing this provision, lawmakers are aiming to bolster the financial responsibility of businesses that utilize state funds. This shift is seen as a way to stabilize the small business sector by ensuring that funds are returned to support renewed investments into the state's economy.

Summary

House Bill 05277 aims to amend the Small Business Express Program by eliminating the provision for loan forgiveness. This act establishes stricter financial requirements for small businesses that seek loans through the program. It outlines that eligible businesses must be operational in Connecticut, meet certain employee thresholds, and maintain good standing with all state agencies. The bill intends to tighten regulations regarding loan terms and conditions, ensuring that businesses are accountable for repayments without the option for forgiveness, which was previously available under specific circumstances.

Contention

Points of contention during discussions surrounding HB 05277 relate to concerns from small business advocates about the potential negative impact this removal may have on business expansion and job creation. Critics argue that the option for loan forgiveness previously helped businesses survive economic downturns and encouraged job retention by providing relief during tough financial periods. Conversely, supporters of the bill argue that removing forgiveness terms will encourage better financial discipline among borrowers and ensure that state assistance is effectively used for businesses that are sustainably profitable.