Substitute House Bill No. 5493
Public Act No. 06-166
AN ACT ESTABLISHING A PILOT MICROLOAN PROGRAM FOR MICROENTERPRISES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective July 1, 2006) As used in sections 2 to 5, inclusive, of this act and section 32-235 of the 2006 supplement to the general statutes:
(1) "Community Economic Development Fund" means the entity established pursuant to subsection (b) of section 8-240k of the general statutes to accomplish the community economic development program;
(2) "Microenterprise" means any business, new or existing, with ten or fewer employees and annual gross revenues of less than five hundred thousand dollars, including home-based and owner-operated businesses;
(3) "Program" means the microloan program for microenterprises established in section 2 of this act.
Sec. 2. (NEW) (Effective July 1, 2006) There is established a pilot microloan program for microenterprises under which the Commissioner of Economic and Community Development shall make a grant to the Community Economic Development Fund. Said fund shall use said grant to support the growth and development of microenterprises.
Sec. 3. (NEW) (Effective July 1, 2006) The grants provided under section 2 of this act shall be used to:
(1) Identify appropriate microloan applicants state-wide;
(2) Evaluate the need for a prospective microloan applicant's business in the community in which the microenterprise is or would be located;
(3) Evaluate community support for a prospective microloan applicant's business in the community in which the microenterprise is or would be located;
(4) Work in conjunction with other community-based nonprofit organizations, state and federal agencies and with the Community Economic Development Fund to assist prospective microloan applicants in preparing and finalizing business plans;
(5) Assist prospective microloan applicants in identifying and accessing other appropriate business resources, including those providing business management training;
(6) Track client data, level of service and outcome of services provided; and
(7) Promote microenterprises and coordinate the delivery of services by microenterprise support organizations to microenterprises.
Sec. 4. (NEW) (Effective July 1, 2006) The Community Economic Development Fund shall consider the following criteria in making a grant to a microloan generating organization:
(1) Sources and sufficiency of operating funds for the microloan generating organization;
(2) The ability of the microloan generating organization to provide the services required under section 3 of this act; and
(3) The proven ability of the microloan generating organization to identify and prepare successful applicants to economic assistance programs similar to the program established in section 3 of this act.
Sec. 5. (Effective July 1, 2006) Not later than June 30, 2007, the Community Economic Development Fund shall submit a report, in accordance with section 11-4a of the general statutes, on the status and results of sections 1 to 3, inclusive, of this act to the joint standing committee of the General Assembly having cognizance of matters relating to economic development.
Approved June 6, 2006