Provides for dedication of federal funds if received to certain Louisiana seed capital programs
Impact
The bill establishes several programs under the Seed Louisiana Initiative, including a Venture Capital Match Program, which aims to increase equity funding for small businesses by providing matching funds to both for-profit and not-for-profit venture capital funds. The funds secured through this initiative must be fully invested into Louisiana-based small businesses within three years of receiving them. This approach is expected to significantly increase the level of investment available to local entrepreneurs and stimulate economic growth across the state.
Summary
House Bill 651, known as the Seed Louisiana Initiative, seeks to enhance capital investment for small businesses in Louisiana. The bill is designed to allocate federal funds received through the American Rescue Plan Act to establish a dedicated Seed Louisiana Fund, which will facilitate various seed capital programs. The overarching goal is to boost funding and growth opportunities for small businesses, particularly those owned by minorities, women, and veterans, through targeted programs and matching grants.
Sentiment
The sentiment surrounding HB 651 has been largely positive, with supporters highlighting its potential to bolster small business development in Louisiana, particularly for underrepresented groups. However, some concerns have been raised regarding the administrative complexities and the effectiveness of the program in genuinely meeting the needs of small businesses. Overall, there is a broad consensus on the need for increased support for small business innovation and growth, particularly in the wake of economic challenges posed by the pandemic.
Contention
One notable point of contention relates to the funding distribution and the eligibility criteria for the various programs created under this bill. Some stakeholders fear that the matching fund ratios may disadvantage smaller startups that may not be able to secure the initial capital required to leverage the state funds. Additionally, there are concerns that the oversight by the Louisiana Economic Development Corporation may not be sufficient to ensure the fair and equitable distribution of these funds, particularly to the most vulnerable business owners.
Creates the Louisiana Entrepreneurial Assistance and Development (LEAD) Program for tax credits for venture capital investments (OR -$37,500,000 GF RV See Note)
Establishes the Invest Louisiana Small Business Development Fund and authorizes a premium tax credit for small business growth investments made by qualified investors. (1/1/22) (OR -$30,000,000 GF RV See Note)
Establishes a grant program to be administered by the office of broadband development and connectivity in the division of administration (EN SEE FISC NOTE GF EX See Note)
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Relating to the creation of the Smith Road Water Control and Improvement District No. 1 of Jefferson County; providing authority to impose a tax and issue bonds; granting levee and flood hazard mitigation powers.