A dedicated fund, known as the Small Business Bridge Loan Program Revolving Loan Fund, is created to support this initiative. This fund will be managed by the department and is composed of legislative appropriations and various financial contributions. A total of $6 million will be allocated over three years to strengthen the fund, ensuring its viability. Notably, any remaining funds at the end of a fiscal year will not revert to the State General Fund, which provides a level of security for future loan disbursements.
Summary
House Bill 509 establishes the Small Business Bridge Loan Program within the Mississippi Department of Banking and Consumer Finance. The primary aim is to provide short-term bridge loans to small business owners to help them secure additional financing. As such, the program is designed to offer crucial financial assistance, allowing businesses to continue operations until more permanent financing solutions are achieved.
Contention
The bill outlines specific eligibility criteria for businesses seeking loans. To qualify, a small business must have been operational for at least one year and can request up to $250,000, with loan terms ranging from 90 to 180 days. This provision aims to balance the need for immediate financial aid while ensuring that the funds are used responsibly. Some may argue this approach may limit access to newer businesses that could benefit from such programs, raising discussions about inclusivity within the support structure for small enterprises.