Mississippi 2024 Regular Session

Mississippi Senate Bill SB2525

Introduced
2/16/24  
Refer
2/16/24  

Caption

Small business lending program; create.

Impact

The program intends to serve as a supplementary financing tool that works alongside traditional commercial lending methods. It will allow small businesses to access up to 50% of the total financing they require from the fund while ensuring that they adhere to established guidelines set forth by the Small Business Administration (SBA). The program encourages job creation by stipulating that at least one job must be created or retained for every $25,000 in loan funding received, thus fostering economic growth within the community.

Summary

Senate Bill 2525 introduces the Mississippi Small Business Assistance Program aimed at providing additional financing options specifically for small businesses looking to start up or expand their operations. The bill proposes to create a dedicated fund, the Mississippi Small Business Assistance Revolving Loan Fund, which will be managed by a qualified nonprofit organization under the supervision of the Mississippi Department of Finance and Administration. The funding sources for this program will include legislative appropriations, federal funds, and other contributions, ensuring a robust financial foundation for loan disbursement.

Contention

While the bill may have significant benefits for small business owners, it also contains provisions that might raise questions regarding accessibility and equity in loan distribution. Only a single loan from the fund can be obtained at any one time, which could limit businesses needing multiple funding sources for sustained growth. Additionally, the requirement for a personal guarantee may deter some potential borrowers who are unwilling or unable to take on further personal risk.

Provisions

The bill outlines various key provisions that include qualifications for loan eligibility, terms and conditions set by the program administrator, and repayment structures. Notably, there will be a grace period for the first six months followed by interest payments in the subsequent six months, thus providing some immediate relief to startups in their initial phases. Furthermore, the flexibility of the fund allows adjustments to interest rates and repayment terms based on market conditions, which could enhance the program's responsiveness to economic shifts.

Companion Bills

No companion bills found.

Previously Filed As

MS HB882

Renaissance Assistance Program to Initiate Development; create to assist small businesses.

MS HB822

Small Business Bridge Loan Program; create.

MS SB2713

Emerging Crops Fund; increase amount that may be loaned to any one borrower to assist in financing minority economic development.

MS SB2525

Forestry; create the Forestry Facility Grant Program.

MS HB1188

Innovate Mississippi; authorize issuance of bonds to provide funds for certain programs and revise provisions regarding certain programs.

MS SB2355

Socially and economically disadvantaged small business; establish program to encourage participation in state contracts by.

MS SB2851

Technology-based capital assistance programs; revise certain terms and amounts of assistance.

MS SB2444

ARPA programs; revise provisions related to certain programs.

MS SB2367

Public School Facilities Grant Program; create and replace Educational Facilities Revolving Loan Program.

MS HB1189

Innovate Mississippi; revise provisions of certain programs administered by.

Similar Bills

MS HB1165

Mississippi Small Business Assistance Revolving Loan Program; establish.

MS SB3157

Bonds; repurpose authority of IHL for USM capital project from Hickman Hall renovation to Science Research Facility.

MS SB2832

Bonds; revise uses of IHL bond proceeds for Mississippi State University College of Architecture, Art and Design.

MS SB2359

Tourism; Mississippi Main Street Revitalization Grant Program.

MS HB1983

Bonds; authorize issuance for various purposes.

MS SB3153

Bonds; authorize to assist in paying costs of IHL, community and junior colleges, and state agencies capital improvements.

MS SB2049

State Budget process; revise provisions related to and transfer certain funds.

MS SB2840

State Budget process; revise provisions related to and transfer certain funds.