Virginia 2023 Regular Session

Virginia Senate Bill SB1320

Introduced
1/10/23  
Refer
1/10/23  
Report Pass
1/18/23  
Report Pass
1/31/23  
Engrossed
2/2/23  
Refer
2/10/23  
Report Pass
2/13/23  
Enrolled
2/21/23  
Chaptered
3/26/23  

Caption

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

Impact

The introduction of SB1320 is expected to revitalize local economies by emphasizing support for small businesses. The provisions of the bill ensure that funds are not only allocated but also monitored closely, thereby promoting accountability in the use of state resources. The bill requires annual reporting to various stakeholders to evaluate the impact of the funding including the number of projects, jobs created, and overall effectiveness in contributing to community betterment, enhancing transparency in the distribution of funds.

Summary

SB1320 establishes the Virginia Community Development Financial Institutions Fund and Program, aiming to support small businesses and community projects through targeted financial assistance. The Fund is a special non-reverting source of finances intended to provide grants and loans to qualifying institutions such as community development financial institutions, community development banks, and credit unions. This funding will facilitate microfinancing initiatives, particularly geared towards projects that promote housing development and rehabilitation as well as broader community revitalization efforts across the Commonwealth of Virginia.

Sentiment

Overall, the sentiment surrounding SB1320 is positive, particularly among those advocating for economic development and support for local businesses. Many proponents view the bill as a necessary step to foster entrepreneurship and uplift economically challenged communities. However, some skepticism exists regarding the effectiveness and administration of the funds, with concerns about bureaucratic processes potentially limiting access to the financial assistance intended for small enterprises.

Contention

A point of contention for SB1320 relates to the accountability measures for qualifying institutions receiving funding. While the bill mandates segregation of funds and repayment in cases of misuse, critics argue this might impose stringent conditions that could deter institutions from applying for assistance. The balance between maintaining oversight and encouraging participation from small financial institutions is a delicate one that could affect the bill's overall success in enhancing local economic development.

Companion Bills

VA HB1411

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

Previously Filed As

VA HB1411

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 H1348

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

VA S815

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

VA SB193

Economic development: grant programs and other financial assistance.

VA AB193

Economic development: grant programs and other financial assistance.

VA LD1500

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

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.

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