Virginia 2023 Regular Session

Virginia House Bill HB1411

Introduced
12/6/22  
Refer
12/6/22  
Report Pass
1/18/23  
Engrossed
1/23/23  
Refer
1/25/23  
Report Pass
2/8/23  
Enrolled
2/14/23  
Chaptered
3/26/23  

Caption

Virginia Community Development Financial Institutions Fund and Program; codifies Fund, etc.

Impact

The bill codifies a special nonreverting fund that ensures all appropriated funds, along with any interests accrued, will be used solely for the purposes outlined in the legislation. By establishing a structured program accompanied by strict criteria for qualifying institutions, the bill aims to facilitate economic growth and community development while ensuring accountability in the use of the state's funds. Expenditures will be overseen by the Department of Housing and Community Development, which will develop guidelines and monitoring techniques for ensuring effective fund utilization.

Summary

House Bill 1411 establishes the Virginia Community Development Financial Institutions Fund and Program, designed to provide financial support to qualifying institutions such as community development financial institutions (CDFIs), banks, and credit unions. Through this program, the state aims to offer grants and loans to support small business operations, housing development, and revitalization projects across Virginia. The legislation emphasizes microfinancing, specifically targeting amounts of $100,000 or less, to bolster capital access for small businesses and stimulate local economies, especially in underserved areas.

Sentiment

The general sentiment surrounding HB 1411 appears to be positive, with support from various legislators who view the bill as a crucial tool for fostering economic development in local communities. However, more conservative voices may raise concerns regarding the allocation of state resources and the potential for misuse of funds. Overall, the bill has garnered bipartisan support, reflecting a common goal of supporting community revitalization, economic opportunity, and access to capital for small enterprises.

Contention

Notable points of contention include the methods of fund allocation and the effectiveness of microfinancing initiatives in achieving long-term community impact. Critics may question whether allocating funds to microfinancing adequately addresses the broader economic challenges faced by small businesses. Additionally, there may be discussions around how reporting requirements and accountability mechanisms will be enforced to prevent misuse of funds and ensure they are meeting the intended financial support objectives.

Companion Bills

VA SB1320

Same As Virginia Community Development Financial Institutions Fund and Program; codifies Fund, etc.

Previously Filed As

VA SB1320

Virginia Community Development Financial Institutions Fund and Program; codifies Fund, etc.

VA SB1230

Community development financial institutions: grant program: income taxation: credits.

VA SB625

California Pollution Control Financing Authority: community development financial institutions: grant program.

VA LD1500

An Act to Establish the Maine Community Development Financial Institution Fund to Support Small Businesses, Rural Economic Development and Affordable Housing

VA SB193

Economic development: grant programs and other financial assistance.

VA HB2077

Virginia Community Flood Preparedness Fund; loan and grant program, eligible recipients.

VA SB1335

Virginia Community Flood Preparedness Fund; loan and grant program, eligible recipients.

VA AB193

Economic development: grant programs and other financial assistance.

VA SB1189

Virginia Residential Development Infrastructure Program and Fund; established.

VA S815

To establish the Massachusetts loan loss guarantee program for community development financial institutions

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