Relating to establishing a pilot program to assist small business in obtaining capital.
Impact
If enacted, SB1410 would significantly influence state laws regarding small business financial assistance programs. The bill emphasizes inclusivity by prioritizing access to capital for businesses owned by underrepresented groups. This measure could lead to increased economic activity by empowering small businesses that have historically encountered barriers to financing, thus contributing to local economies and job creation.
Summary
Senate Bill 1410 proposes the establishment of a pilot program aimed at assisting small businesses in obtaining capital. This program is designed to address the challenges that small enterprises often face in securing funding, particularly those owned by disadvantaged individuals, minorities, veterans, and people residing in rural areas. The legislation seeks to allocate a portion of the capital access fund specifically for this initiative, ensuring that the program has a dedicated financial source to facilitate loans for these businesses.
Contention
Notable points of contention around SB1410 may arise from the funding allocation and the criteria for loan forgiveness. While the bill specifies a maximum rate of 30% forgiveness for loans up to $50,000, opponents may argue about the sustainability of such financial commitments and the implications for the capital access fund. Additionally, discussions may focus on the effectiveness of targeted programs for specific demographic groups in achieving broader economic equality.
Relating to the creation of a grant matching program for the federal small business innovation research and small business technology transfer programs.