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House Co-Sponsorship Memoranda
House of Representatives
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | January 22, 2015 11:17 AM |
|---|---|
| From: | Representative W. Curtis Thomas |
| To: | All House members |
| Subject: | Small Business Investment Guarantee Program |
| In the near future, I plan to reintroduce legislation that will provide additional business access to capital by reinvigorating the much underutilized Second Stage Loan Program. The original program was allotted $50,000,000 and has a remaining balance of $46,640.000. My legislation would put this money to work instead of allowing it to lay dormant. The newly expanded and remained 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 business 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 administrated through the Commonwealth Funding 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. (Formerly HB2315 of 2013-14 Legislative Session) |
Introduced as HB632