Bill Text: CT HB05045 | 2016 | General Assembly | Comm Sub
Bill Title: An Act Concerning Revisions To The Small Business Express Program.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2016-04-19 - Tabled for the Calendar, House [HB05045 Detail]
Download: Connecticut-2016-HB05045-Comm_Sub.html
General Assembly |
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February Session, 2016 |
*_____HB05045FIN___041916____* |
AN ACT CONCERNING REVISIONS TO THE SMALL BUSINESS EXPRESS PROGRAM.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 32-7g of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):
(a) There is established within the Department of Economic and Community Development the Small Business Express program. Said program shall provide small businesses with various forms of financial assistance, using a streamlined application process to expedite the delivery of such assistance. The Commissioner of Economic and Community Development, at his or her discretion, may partner with the lenders in the Connecticut Credit Consortium, established pursuant to section 32-9yy, in order to fulfill the requirements of this section. A small business eligible for assistance through said program shall [, as of June 15, 2012,] (1) employ [, on at least fifty per cent of its working days during the preceding twelve months,] not more than one hundred employees, (2) have operations in Connecticut, (3) have been registered to conduct business for not less than [twelve] six months, and (4) be in good standing with the payment of all state and local taxes and with all state agencies. A small business eligible for a loan under subsection (d) or (e) of this section shall also demonstrate that it has been denied a loan for a similar amount by a private sector lender.
(b) The Small Business Express program shall consist of various components, including (1) a revolving loan fund, as described in subsection (d) of this section, to support small business growth, (2) a job creation incentive component, as described in subsection (e) of this section, to support hiring, [and] (3) a matching grant component, as described in subsection (f) of this section, to provide capital to small businesses that can match the state grant amount, and (4) a fund established in collaboration with private sector lenders doing business in Connecticut, as described in subsection (g) of this section, to encourage lending and provide small businesses in the state with access to capital. The Commissioner of Economic and Community Development shall work with eligible small business applicants to provide a package of assistance using the financial assistance provided by the Small Business Express program and may refer small business applicants to the Subsidized Training and Employment program established pursuant to section 31-3pp and any other appropriate state program. Notwithstanding the provisions of section 32-5a regarding relocation limits, the department may require, as a condition of receiving financial assistance pursuant to this section, that a small business receiving such assistance shall not relocate, as defined in [said] section 32-5a, for five years after receiving such assistance or during the term of the loan, whichever is longer. All other conditions and penalties imposed pursuant to [said] section 32-5a shall continue to apply to such small business.
(c) The commissioner shall establish a streamlined application process for the Small Business Express program. The small business applicant may receive assistance pursuant to said program not later than thirty days after submitting a completed application to the department. Any small business meeting the eligibility criteria in subsection (a) of this section may apply to said program. The commissioner shall give priority for available funding to small businesses creating jobs and may give priority for available funding to (1) economic base industries, as defined in subsection (d) of section 32-222, including, but not limited to, those in the fields of precision manufacturing, business services, green and sustainable technology, bioscience and information technology, and (2) businesses attempting to export their products or services to foreign markets.
(d) (1) There is established as part of the Small Business Express program a revolving loan fund to provide loans to eligible small businesses. Such loans shall be used for acquisition or purchase of machinery and equipment, construction or leasehold improvements, relocation expenses, working capital or other business-related expenses, as authorized by the commissioner.
(2) Loans from the revolving loan fund may be in amounts from ten thousand dollars to a maximum of one hundred thousand dollars, shall carry a maximum repayment rate of four per cent and shall be for a term of not more than ten years. The department shall review and approve loan terms, conditions and collateral requirements in a manner that prioritizes job growth and retention.
(3) Any eligible small business meeting the eligibility criteria in subsection (a) of this section may apply for assistance from the revolving loan fund, but the commissioner shall give priority to applicants that, as part of their business plan, are creating new jobs that will be maintained for not less than twelve consecutive months.
(e) (1) There is established as part of the Small Business Express program a job creation incentive component to provide loans for job creation to small businesses meeting the eligibility criteria in subsection (a) of this section, with the option of loan forgiveness based on the maintenance of an increased number of jobs for not less than twelve consecutive months. Such loans may be used for training, marketing, working capital or other expenses, as approved by the commissioner, that support job creation.
(2) Loans under the job creation incentive component may be in amounts from ten thousand dollars to a maximum of three hundred thousand dollars, shall carry a maximum repayment rate of four per cent and shall be for a term of not more than ten years. Payments on such loans may be deferred, and all or part of such loan may be forgiven, based upon the commissioner's assessment of the small business's attainment of job creation goals. The department shall review and approve loan terms, conditions and collateral requirements in a manner that prioritizes job creation.
(f) (1) There is established as part of the Small Business Express program a matching grant component to provide grants for capital to small businesses meeting the eligibility criteria in subsection (a) of this section. Such small businesses shall match any state funds awarded under this program. Grant funds may be used for ongoing or new training, working capital, acquisition or purchase of machinery and equipment, construction or leasehold improvements, relocation within the state or other business-related expenses authorized by the commissioner.
(2) Matching grants provided under the matching grant component may be in amounts from ten thousand dollars to a maximum of one hundred thousand dollars. The commissioner shall prioritize applicants for matching grants based upon the likelihood that such grants will assist applicants in maintaining job growth.
(3) The commissioner may waive the matching requirement for grants under this subsection for working capital to small businesses located within distressed municipalities, as defined in section 32-9p.
(g) The commissioner, in collaboration with private sector lenders doing business in Connecticut, shall establish as part of the Small Business Express program a fund to encourage lending and provide small businesses in the state with access to capital. Such capital shall be used for acquisition or purchase of machinery and equipment, construction or leasehold improvements, relocation expenses, working capital or other business-related expenses, as authorized by the commissioner. The provisions of subsections (d) and (e) of this section shall not be construed to apply to such fund. Such fund shall be administered by the Department of Economic and Community Development. Notwithstanding the provisions of section 32-7h, the commissioner shall allocate not more than ten per cent of available funding under the Small Business Express program to such fund.
[(g)] (h) Not later than June 30, 2012, and every six months thereafter, the commissioner shall provide a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, appropriations, commerce and labor. Such report shall include available data on (1) the number of small businesses that applied to the Small Business Express program, (2) the number of small businesses that received assistance under said program and the general categories of such businesses, (3) the amounts and types of assistance provided, (4) the total number of jobs on the date of application and the number proposed to be created or retained, and (5) the most recent employment figures of the small businesses receiving assistance. The contents of such report shall also be included in the department's annual report.
Sec. 2. (Effective July 1, 2016) Not later than October 1, 2016, the Commissioner of Economic and Community Development shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to commerce. Such report shall include: (1) A description of the fund established pursuant to subsection (g) of section 32-7g of the general statutes, as amended by this act; (2) the number of and extent to which private sector lenders were consulted in the development of such fund; and (3) a description of the commissioner's evaluation of potential forms of collaboration with private sector lenders in such fund, including, but not limited to, leveraged funds, loan guarantees, contract financing and bridge loans and other short-term notes.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
July 1, 2016 |
32-7g |
Sec. 2 |
July 1, 2016 |
New section |
CE |
Joint Favorable Subst. |
|
FIN |
Joint Favorable |