Connecticut 2022 Regular Session

Connecticut Senate Bill SB00481

Introduced
3/25/22  
Introduced
3/25/22  

Caption

An Act Investing State Funds In Underserved And Low-income Communities.

Impact

The legislation is designed to provide financial support to small businesses and consumers who typically would not qualify for loans. By offering loan guarantees, the program aims to mitigate financial risks for participating institutions, thereby encouraging them to extend credit to underserved individuals and businesses. This initiative is expected to foster economic growth, increase opportunities for job creation, and stimulate localized investment in areas of high need, thereby contributing positively to community welfare and economic resilience.

Summary

Senate Bill 00481 aims to invest state funds in underserved and low-income communities by establishing a loan guarantee program managed by the State Treasurer. The bill directs the Treasurer to create a pool of funds, not exceeding $100 million, for investments in community banks, credit unions, and community development financial institutions. These funds are intended to enhance financial and economic opportunities in designated public investment communities, which are defined by specific economic criteria. The bill emphasizes the need for community-focused financial institutions to bolster the economic development of vulnerable sectors of the population.

Contention

The bill may face debate regarding the effectiveness of government intervention in financial markets versus private sector solutions. Advocates for the bill argue that it is essential to provide targeted support in economically distressed areas to counteract systemic inequities in access to financial resources. Conversely, critics may contend that such policies could lead to misallocation of funds or dependency on state support without fostering sustainable economic development. Furthermore, the definition of what constitutes a 'public investment community' may also be scrutinized to ensure equitable distribution of resources.

Companion Bills

No companion bills found.

Previously Filed As

CT HB05142

An Act Concerning Consumer Credit, Certain Bank Real Estate Improvements, The Connecticut Uniform Securities Act, Shared Appreciation Agreements, Innovation Banks, The Community Bank And Community Credit Union Program And Technical Revisions To The Banking Statutes.

CT HB05145

An Act Concerning Innovation Banks.

CT SB00501

An Act Concerning Motor Vehicle Assessments For Property Taxation, Innovation Banks, The Interest On Certain Tax Underpayments, The Assessment On Insurers, School Building Projects, The South Central Connecticut Regional Water Authority Charter And Certain State Historic Preservation Officer Procedures.

CT HB05434

An Act Concerning The Community Economic Development Fund.

CT HB05390

An Act Concerning Transit-oriented Communities.

CT SB00284

An Act Concerning A Security Deposit Loan Assistance Program.

CT HB05446

An Act Concerning Funding For Community Access Television, The Connecticut Television Network And Low-income Internet Access And Taxation Of Communications Services Providers.

CT SB00002

An Act Concerning Artificial Intelligence.

CT HB05523

An Act Concerning Allocations Of Federal American Rescue Plan Act Funds And Provisions Related To General Government, Human Services, Education And The Biennium Ending June 30, 2025.

CT HB05344

An Act Establishing First-time Homebuyer Savings Accounts And A Related Tax Deduction And Credit.

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