The introduction of HB 414 is intended to bolster the financial stability of small businesses in Mississippi, particularly those that may face difficulties in obtaining immediate financing during tough economic times. By establishing the loan program and the revolving fund, the bill hopes to create a more supportive environment for small businesses, potentially fostering growth and job creation within the state.
Summary
House Bill 414 aims to establish a Small Business Bridge Loan Program under the Mississippi Department of Banking and Consumer Finance. This program is designed to provide short-term financial assistance through bridge loans to small business owners until they can secure more permanent financing. The bill outlines the creation of a dedicated revolving loan fund that will consist of various forms of funding, including legislative appropriations and federal funds, specifically earmarked for providing these loans to eligible small businesses.
Contention
One notable aspect of the bill is the stipulation that businesses must have been established for at least one year to be eligible for the loans. However, the specific details regarding the administration of the fund, interest rates, and repayment terms will be determined by the department. Some may raise concerns regarding the sustainability of the fund and the appropriations required in future fiscal years, as the bill sets forth specific funding amounts to be transferred into the fund over the next few years.