Share:
House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | April 29, 2014 10:58 AM |
|---|---|
| From: | Representative W. Curtis Thomas |
| To: | All House members |
| Subject: | Small Business Investment Guarantee Program |
| In the near future, I intend to introduce legislation that will increase business access to capital by reinvigorating the Second Stage Loan Program which largely has been underutilized. I recently learned that the program, which was originally allocated $50,000,000, has a remaining balance of $46,640,000. My legislation will put this money to work instead of allowing it to lay dormant. The newly expanded and renamed program will allow both commercial lending institutions and economic development organizations to apply for loan guarantees to help securitize capital for small businesses (those employing no more than 100 individuals). In addition to bolstering businesses engaged in second stage manufacturing, the bill will prioritize loan applications related to life sciences, advanced technology, energy development and aviation and aerospace. These sectors all have the growth potential to provide good paying family sustaining jobs. Small businesses engaged in commercial, services, retail and agricultural production activities are eligible to apply for the program if they are located within an underserved area of a distressed community. The program will continue to be administered through the Commonwealth Financing Agency. Loans may not be approved unless the borrower secures an equity investment of at least 10% of the total project cost from non-public sources. Additionally, loan guarantees may not exceed $1,000,000. Please join me in sponsoring this legislation. |
||
| View Attachment | ||
Introduced as HB2315