Connecticut Senate Bill SB00659

Connecticut 2023 Regular Session

• Introduced: 1/18/23
• Refer: 1/18/23

Caption

An Act Concerning The Development Of An Internet Web Site Through Which Certain Businesses May Apply For Loans From Community Banks.

Impact

The implementation of SB00659 is expected to have significant implications for state laws governing business finance. By establishing a centralized web platform for loan applications, the bill seeks to simplify the bureaucratic process and increase the accessibility of financial resources to underserved business sectors. This could lead to increased entrepreneurial growth and support within minority and women-owned businesses, which historically may face barriers in securing funding.

Summary

SB00659 proposes the establishment of a dedicated Internet web portal to streamline the application process for small businesses seeking loans from community banks. This initiative specifically targets businesses that are either minority or women-owned and have been operational for more than six months but less than two years. The bill aims to facilitate easier access to financing, particularly for those located in federally designated opportunity zones, enhancing opportunities for economic development in these areas.

Contention

While many view SB00659 as a positive step towards fostering equity in business opportunities, there are potential points of contention regarding the state's management of the loan enhancement program. Critics may raise concerns about the implications of state-funded credit enhancements, particularly the provision that the state would accept the first loss for up to ten percent of the loan value. This could raise debates about state financial responsibility and the risk associated with such enhancements.

Notable_points

Overall, SB00659 reflects a commitment to supporting small businesses through financial innovation and accessibility. By leveraging technology and specifically targeting vulnerable sectors, it aims to create a more equitable economic landscape. The focus on minority and women-owned enterprises also aligns with broader state and national initiatives aimed at closing the funding gap these businesses often experience.