CHAPTER 588r
SMALL BUSINESS

      Sec. 32-340. Short title: Small Business Financial Recovery Act of 1993. Sections 32-340 to 32-346, inclusive, and section 12-217o shall be known and may be cited as the "Small Business Financial Recovery Act of 1993".

      (P.A. 93-382, S. 39, 69; P.A. 10-188, S. 14.)

      History: P.A. 93-382 effective July 1, 1993; P.A. 10-188 made a technical change, effective June 7, 2010.

      Sec. 32-341. Small business assistance program. (a) There is established within the Connecticut Development Authority a small business assistance program under which the authority shall make loans and loan guarantees and provide equity equivalent capital to businesses in this state that employ not more than one hundred persons and are unable to obtain conventional financial assistance. The authority may establish criteria for such loans, including, but not limited to, whether such assistance would enable an applicant to create or retain jobs and whether the applicant exports goods or services out of the state.

      (b) The authority shall develop an accelerated application process for such program. No business may receive more than two hundred thousand dollars in loans, loan guarantees or equity equivalent capital under the program. Payments of principal and interest of loans under the program shall be made to the authority for deposit in the Connecticut Works Fund authorized under section 32-23ii. The authority is authorized for the purposes of this section to enter into contracts with financial institutions for the purpose of guaranteeing loans, participating in loans or participating in providing equity equivalent capital to businesses.

      (P.A. 93-382, S. 40, 69; May 25 Sp. Sess. P.A. 94-1, S. 66, 130.)

      History: P.A. 93-382 effective July 1, 1993; May 25 Sp. Sess. P.A. 94-1 made technical change, effective July 1, 1994.

      See Sec. 32-477 re priority for applicants establishing work environments consistent with criteria in Sec. 32-475.

      Sec. 32-342. Surety companies and bonds. Technical assistance. The Commissioner of Economic and Community Development shall provide technical assistance to enable (1) surety companies to participate in the surety guarantee program of the United States Small Business Administration and (2) small contractors to obtain bonds from such surety companies.

      (P.A. 93-382, S. 45, 69; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)

      History: P.A. 93-382 effective July 1, 1993; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development.

      Sec. 32-343. Bond issue. Section 32-343 is repealed, effective July 1, 1995.

      (P.A. 93-382, S. 46, 69; P.A. 95-272, S. 28, 29.)

      Sec. 32-344. (Formerly Sec. 32-175). Definitions. As used in this section and sections 32-345 and 32-346:

      (1) "Business-led consortium" means a coalition or other group of entities, related by contractual or other arrangements, that (A) includes at least one Connecticut business and may include other businesses and nonprofit or public institutions, and (B) is led by a business for the purpose of technology development or commercialization;

      (2) "Corporation" means Connecticut Innovations, Incorporated, as created under section 32-35;

      (3) "Small business" means a corporation, limited liability company, partnership, sole proprietorship or individual, operating a business for profit, which employs five hundred or fewer employees, including employees employed in any subsidiary or affiliated corporation;

      (4) "Small business innovation research program" means the federal program established pursuant to the Small Business Innovation Development Act of 1982 (P.L. 97-219), as amended, which provides funds to small businesses to conduct innovative research which has potential commercial applications;

      (5) "Small business technology transfer program" means the federal program established pursuant to the Small Business Research and Development Enhancement Act of 1992 (P.L. 102-564), as amended, which provides funds to small businesses that collaborate with nonprofit research institutions to conduct innovative research which has potential commercial applications;

      (6) "Federal technology support program" means any program now or hereafter established by the government of the United States of America or any agency or instrumentality thereof, other than the small business innovation research program and small business technology transfer program that (A) is authorized to provide funding support for projects undertaken by businesses and business-led consortia for the development or commercialization of advanced technologies, including without limitation technologies applied or applicable to national defense, and (B) requires recipients to furnish a portion of the funds necessary to carry out such activities;

      (7) "Micro business" means a business entity, including its affiliates, that (A) is independently owned and operated, and (B) employs fewer than fifty full-time employees or has gross annual sales of less than five million dollars.

      (P.A. 87-431, S. 1, 3; P.A. 93-382, S. 47, 69; P.A. 94-162, S. 1, 4; P.A. 95-272, S. 22, 29; P.A. 06-83, S. 6.)

      History: P.A. 93-382 deleted definitions of "commissioner" and "department", added definition of "corporation", renumbering Subdivs. as necessary and redefined "small business" to increase applicable number of employees from 250 to 500, effective July 1, 1993; P.A. 94-162 inserted "or the small business technology transfer program" in Subdiv. (2) and added Subdiv. (4) defining such program, effective July 1, 1994; Sec. 32-175 transferred to Sec. 32-344 in 1995; P.A. 95-272 inserted new Subdiv. (1) defining "business-led consortium" and renumbered the remaining Subdivs., included limited liability companies in definition of "small business" and deleted reference to federal small business innovation research program and added new Subdiv. (6) defining "federal technology support program", effective July 1, 1995; P.A. 06-83 added Subdiv. (7) defining "micro business", effective July 1, 2006.

      See Sec. 32-478 re priority for applicants establishing work environments consistent with criteria in Sec. 32-475.

      Sec. 32-345. (Formerly Sec. 32-176). Development research and economic assistance matching grant program. (a) The Department of Economic and Community Development may establish a Connecticut development research and economic assistance matching grant program, within available appropriations and, for the purposes of providing financial aid, as defined in subdivision (4) of section 32-34, to assist: (1) Connecticut small businesses in conducting marketing-related activities to facilitate commercialization of research projects funded under the small business innovation research program or the small business technology transfer program; (2) business-led consortia or Connecticut businesses in connection with their participation in a federal technology support program; and (3) micro businesses, in conducting development and research. The department may enter into an agreement, pursuant to chapter 55a, with a person, firm, corporation or other entity to operate such program.

      (b) Applications shall be submitted in the manner prescribed by the department. Each such application shall include the following: (1) The location of the principal place of business of the applicant; (2) an explanation of the intended use of the funding being applied for, the potential market for the end product of the project and the marketing strategy; and (3) such other information that the department deems necessary. Information contained in any such application submitted to the department under this section which is of a proprietary nature shall be exempt from the provisions of subsection (a) of section 1-210.

      (c) In determining whether an applicant shall be selected for funding pursuant to this section, the department, or the operator, if any, selected pursuant to subsection (a) of this section, shall consider, but such consideration need not be limited to, the following factors: (1) The description of the small business innovation research project, the small business technology transfer project or the federally-supported technology project and the potential commercial applicability of such project; (2) evidence of satisfactory participation in the applicable small business innovation research program, the small business technology transfer program or the federal technology support program; (3) the potential impact of such research project on the workforce in the region where such small business is located; (4) the size of the potential market, strength of the marketing strategy, and ability of the applicant to execute the strategy and successfully commercialize the end product; and (5) the resources and record of success of the company relative to development and commercialization. Within the availability of funds, the department may provide financial aid to eligible applicants provided no business may receive more than fifty thousand dollars for any single small business innovation research project or small business technology transfer project. The department may require a business to repay such assistance or pay a multiple of the assistance to the department. All such repayments and payments shall be deposited in the Connecticut technology partnership assistance program revolving account established under section 32-346.

      (d) The department may establish a development, research and economic assistance matching financial aid program for micro businesses that have received federal funds for Phase II proposals under the small business innovation research program and the small business technology transfer program. Any micro business receiving financial aid under this subsection shall use such financial aid for the same purpose such micro business was awarded said federal funds. The department may enter into an agreement, pursuant to chapter 55a, with a person, firm, corporation or other entity to operate such a program.

      (e) On or before January 15, 2008, and annually thereafter, the Commissioner of Economic and Community Development shall, in consultation with the program operator, if any, submit a report on the status of the development research and economic assistance matching grant program to the chairpersons of the joint standing committee of the General Assembly having cognizance of matters relating to the Department of Economic and Community Development. Such report shall include, but need not be limited to, a description of the projects supported and the type of financial aid provided.

      (P.A. 87-431, S. 2, 3; P.A. 89-143, S. 1, 2; P.A. 93-382, S. 48, 69; P.A. 94-162, S. 2, 4; P.A. 95-272, S. 23, 29; P.A. 06-83, S. 7; June Sp. Sess. P.A. 07-4, S. 13.)

      History: P.A. 89-143 increased the maximum initial grant amount from $15,000 to $20,000 and increased the maximum amount of subsequent grants from $5,000 to $20,000 in Subsec. (c); P.A. 93-382 transferred program from department of economic development to Connecticut Innovations, Incorporated, provided for financial assistance instead of grants only and authorized corporation to require business to repay assistance, provided for funding to assist small businesses "in conducting marketing-related activities to facilitate commercialization of research projects funded under the small business innovation research program" instead of to assist small businesses participating in said program "in continuing innovative research which has potential commercial applications" and limited the amount of financial assistance that a business may receive during the fiscal year ending June 30, 1994, for a single project, effective July 1, 1993; P.A. 94-162 applied section to small business technology transfer program and changed name of account in Subsec. (c), effective July 1, 1994; Sec. 32-176 transferred to Sec. 32-345 in 1995; P.A. 95-272 amended Subsec. (a) to change competitive funding to Connecticut technology partnership program and added reference to Sec. 32-34(4) and added new Subdiv. (2) re business-led consortia or Connecticut businesses in connection with participation in a federal technology support program, Subsec. (b) to change research to technology, Subsec. (c) to make technical changes and add reference to federally-supported technology project and program, small business innovation research project and small business technology transfer project and deleted Subsec. (e) re termination of program, effective July 1, 1995; P.A. 06-83 amended Subsec. (a) to replace "Connecticut technology partnership program" with "Connecticut development research and economic assistance matching grant program" and add Subdiv. (3) re micro businesses, amended Subsec. (b)(2) to delete "technology", added new Subsec. (d) re eligibility of Phase II proposals for matching financial aid and redesignated existing Subsec. (d) as Subsec. (e), effective July 1, 2006; June Sp. Sess. P.A. 07-4 substituted Department of Economic and Community Development for Connecticut Innovations, Incorporated throughout, in Subsecs. (a) and (d) permitted department to contract with entities to operate the respective programs and, in Subsec. (e), required Commissioner of Economic and Community Development to submit report to legislative committee re status of development research and economic assistance matching grant program, effective June 29, 2007.

      Sec. 32-346. Revolving account. The corporation shall establish a "Connecticut technology partnership assistance program revolving account". Any and all references in any general statutes, procedure or legal document to the "phase III assistance program revolving account" shall, on and after July 1, 1995, be deemed to refer to the "Connecticut technology partnership assistance program revolving account". The account shall be used for the purpose of providing financial aid under section 32-41u.

      (P.A. 93-382, S. 49, 69; P.A. 94-162, S. 3, 4; P.A. 95-272, S. 24, 29; P.A. 00-187, S. 58, 75; June Sp. Sess. P.A. 07-4, S. 14.)

      History: P.A. 93-382 effective July 1, 1993; P.A. 94-162 changed name of account, effective July 1, 1994; P.A. 95-272 changed phase III assistance program revolving account to Connecticut technology partnership assistance program revolving account and added technical name change language, effective July 1, 1995; P.A. 00-187 authorized use of account for providing financial aid under Sec. 32-41u, effective July 1, 2000; June Sp. Sess. P.A. 07-4 eliminated availability of funds from account for financial assistance under Sec. 32-345, effective June 29, 2007.

      Sec. 32-347. Short title: Small Business Recovery Act of 1993. Sections 32-347 to 32-349, inclusive, shall be known and may be cited as the "Small Business Recovery Act of 1993".

      (P.A. 93-382, S. 50, 69.)

      History: P.A. 93-382 effective July 1, 1993.

      Sec. 32-348. Establishment of a manufacturing extension service (CONNSTEP). Grants. Bond issue. (a) There is hereby established within the Department of Economic and Community Development a manufacturing extension service program for the purpose of awarding a grant to the Connecticut manufacturing extension partnership affiliate, which shall be known as CONNSTEP, as designated by the United States Department of Commerce National Institute of Standards and Technology. Applications for a grant under this section shall be made and grants shall be awarded in the manner and form prescribed by the commissioner. The extension service's responsibilities shall include, but not be limited to, providing training for small and medium-sized businesses in high performance work practices.

      (b) For the purposes described in subsection (c) of this section, the State Bond Commission shall have the power, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate four million dollars.

      (c) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (c) of this section, shall be used by the Commissioner of Economic and Community Development for the purposes of subsection (a) of this section.

      (d) All provisions of section 3-20, or the exercise of any right or power granted thereby which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due.

      (P.A. 93-382, S. 51, 69; P.A. 94-116, S. 11, 28; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 98-203, S. 2, 13.)

      History: P.A. 93-382 effective July 1, 1993; P.A. 94-116 added provision in Subsec. (a) re training in high performance work practices, effective July 1, 1994; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 98-203 amended Subsec. (a) to identify CONNSTEP as the manufacturing extension service, deleted former Subsec. (b) re a study of certain business assistance programs, relettered existing subsections accordingly and amended new Subsec. (b) to increase the total bond authorization for the program to $4,000,000, effective June 8, 1998.

      Sec. 32-349. One-stop business registry. Bond issue. (a) There shall be established a one-stop business registry in the Department of Economic and Community Development. The Secretary of the Office of Policy and Management shall coordinate the establishment of the business registry, which shall be operational by July 1, 1995. The Department of Economic and Community Development and the Office of Policy and Management may jointly contract with private entities for purposes of implementing the provisions of this section. The registry shall provide the following services to any person, firm or corporation engaged in or intending to engage in business activities in the state: (1) Access by computer network to all applicable forms relating to registration, regulatory, licensing, permitting and approval requirements of each state agency which may have jurisdiction over the activities of such person, firm or corporation, (2) assistance in the completion of all such forms, (3) centralized collection of any fees required to be paid by the person, firm or corporation pursuant to registration, regulatory, licensing, permitting or approval requirements of state agencies and distribution to each such agency of any such fees, (4) submission of completed forms to state agencies by computer network and (5) liaison with all agencies receiving such completed forms to ensure that the forms are processed promptly.

      (b) For the purposes described in subsection (c) of this section, the State Bond Commission shall have the power, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate one million dollars.

      (c) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (b) of this section, shall be used by the Commissioner of Economic and Community Development for the purposes of subsection (a) of this section.

      (d) All provisions of section 3-20, or the exercise of any right or power granted thereby which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due.

      (P.A. 93-382, S. 52, 69; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 98-246, S. 2, 4; June Sp. Sess. P.A. 98-1, S. 104, 121.)

      History: P.A. 93-382 effective July 1, 1993; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 98-246 amended Subsec. (a) by authorizing the Department of Economic and Community Development and the Office of Policy and Management to jointly contract with private entities to implement section; June Sp. Sess. P.A. 98-1 changed effective date of P.A. 98-246, S. 2 from October 1, 1998, to June 8, 1998, effective July 1, 1998.

      Sec. 32-350. Definitions. As used in sections 32-350 to 32-352, inclusive:

      (1) "Commissioner" means the Commissioner of Economic and Community Development;

      (2) "Woman-owned business" means any business (A) of which fifty-one per cent or more of the capital stock, if any, or assets are owned by a woman who is active in the daily affairs of the business and has the power to direct the management and policies of the business, and (B) that is a small business having fifty or fewer employees;

      (3) "Financial institution" means any trust company, bank, savings bank, credit union, savings and loan association, insurance company, investment company, mortgage banker, trustee, executor, pension fund, retirement fund or other fiduciary or private financial institution.

      (P.A. 99-208, S. 1; P.A. 01-10, S. 2.)

      History: P.A. 01-10 made a technical change in Subdiv. (2).

      Sec. 32-351. Micro-loan program for woman-owned businesses. (a)(1) There is established a micro-loan program for woman-owned businesses. The commissioner may enter into a contract with a quasi-public agency, financial institution or nonprofit corporation to provide for the administration and the state-wide promotion of the program. On or before July 1, 2001, the program shall be a self sustaining revolving loan fund. No loan or loan guarantee that is not in accordance with the provisions of such contract shall be made from the fund established under subdivision (2) of this subsection.

      (2) There is established a fund to be known as the "Micro-Loan Revolving Fund for Woman-Owned Businesses". The fund shall contain (A) any moneys allocated pursuant to subdivision (3) of this subsection, and (B) any moneys required by law to be deposited into the fund, including, but not limited to, any moneys appropriated by the state and interest payments and principal payments on loans. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the next succeeding fiscal year. The fund shall be used to make loans and loan guarantees pursuant to subsection (b) of this section and to pay reasonable and necessary expenses incurred in administering such loans and loan guarantees and the program established under this subsection.

      (3) The commissioner may allocate moneys from the Economic Assistance Revolving Fund, established under section 32-231, to the fund established under subdivision (2) of this subsection.

      (b) The state, acting by and in the discretion of the commissioner, may, pursuant to a contract entered into under subdivision (1) of subsection (a) of this section, provide funds to a quasi-public agency, financial institution or nonprofit corporation to be used by such quasi-public agency, financial institution or nonprofit corporation to make loans, interest-free loans, deferred loans or loan guarantees to woman-owned businesses. Any such loan or loan guarantee shall be used by a woman-owned business for business start-up costs or the day-to-day operation of the business. The proceeds from any loan made pursuant to this subsection shall not be used for the refinancing of existing loans.

      (c) The amount of any loan made pursuant to subsection (b) of this section shall not exceed fifty thousand dollars. The amount of any loan guarantee made pursuant to subsection (b) of this section shall not exceed thirty per cent of the principal amount.

      (d) Each woman-owned business applying for a loan or loan guarantee under subsection (b) of this section shall submit an application in such form and containing such information as the commissioner shall require. Security for such loan may include a security interest, an assignment of a lease or the subordination of a mortgage. In addition to any other conditions of default under such loan or loan guarantee, the woman-owned business shall be in default if such loan or loan guarantee is not used for the purposes set forth in subsection (b) of this section or if the woman-owned business fails to participate in the business management training program required under section 32-352.

      (e) Payments of principal and any interest on loans, interest-free loans and deferred loans made pursuant to subsection (b) of this section shall be deposited into the Micro-Loan Revolving Fund for Woman-Owned Businesses established under subdivision (2) of subsection (a) of this section.

      (f) The commissioner may adopt regulations, in accordance with chapter 54, to carry out the provisions of this section. Such regulations may provide for loan procedures, repayment terms, interest and security requirements, default and remedy provisions, and such other terms and conditions as the commissioner deems appropriate.

      (P.A. 99-208, S. 2; P.A. 01-10, S. 3.)

      History: P.A. 01-10 changed "women-owned" to "woman-owned" throughout.

      Sec. 32-352. Business management training program. Each woman-owned business that receives a loan or loan guarantee pursuant to section 32-351 shall participate in a business management training program as designated by the commissioner. The commissioner may establish a business management training program to be administered by either the Office of Small Business Affairs or a nonprofit corporation, as determined by the commissioner, and may arrange for the participation of such other programs as the commissioner deems appropriate in implementing the business management training program. The commissioner may enter into a contract with a nonprofit corporation to provide for the administration of the business management training program pursuant to this section.

      (P.A. 99-208, S. 3; P.A. 01-10, S. 4.)

      History: P.A. 01-10 changed "women-owned" to "woman-owned".

      Sec. 32-353. Definitions. As used in sections 32-353 to 32-355, inclusive:

      (1) "Commissioner" means the Commissioner of Economic and Community Development;

      (2) "Minority-owned business" means any business (A) that is a minority business enterprise, as defined in section 4a-60g, and (B) that is a small business having fifty or fewer employees; and

      (3) "Financial institution" means any trust company, bank, savings bank, credit union, savings and loan association, insurance company, investment company, mortgage banker, trustee, executor, pension fund, retirement fund or other fiduciary or private financial institution.

      (P.A. 99-208, S. 4.)

      Sec. 32-354. Micro-loan program for minority-owned businesses. (a)(1) There is established a micro-loan program for minority-owned businesses. The commissioner may enter into a contract with a quasi-public agency, financial institution or nonprofit corporation to provide for the administration and the state-wide promotion of the program. On or before July 1, 2001, the program shall be a self sustaining revolving loan fund. No loan or loan guarantee that is not in accordance with the provisions of such contract shall be made from the fund established under subdivision (2) of this subsection.

      (2) There is established a fund to be known as the "Micro-Loan Revolving Fund for Minority-Owned Businesses". The fund shall contain (A) any moneys allocated pursuant to subdivision (3) of this subsection, and (B) any moneys required by law to be deposited into the fund, including, but not limited to, any moneys appropriated by the state and interest payments and principal payments on loans. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the next succeeding fiscal year. The fund shall be used to make loans and loan guarantees pursuant to subsection (b) of this section and to pay reasonable and necessary expenses incurred in administering such loans and loan guarantees and the program established under this subsection.

      (3) The commissioner may allocate moneys from the Economic Assistance Revolving Fund, established under section 32-231, to the fund established under subdivision (2) of this subsection.

      (b) The state, acting by and in the discretion of the commissioner, may, pursuant to a contract entered into under subdivision (1) of subsection (a) of this section, provide funds to a quasi-public agency, financial institution or nonprofit corporation to be used by such quasi-public agency, financial institution or nonprofit corporation to make loans, interest-free loans, deferred loans or loan guarantees to minority-owned businesses. Any such loan or loan guarantee shall be used by the minority-owned business for business start-up costs or the day-to-day operation of the business. The proceeds from any loan made pursuant to this subsection shall not be used for the refinancing of existing loans.

      (c) The amount of any loan made pursuant to subsection (b) of this section shall not exceed fifty thousand dollars. The amount of any loan guarantee made pursuant to subsection (b) of this section shall not exceed thirty per cent of the principal amount.

      (d) Each minority-owned business applying for a loan or loan guarantee under subsection (b) of this section shall submit an application in such form and containing such information as the commissioner shall require. Security for such loan may include a security interest, an assignment of a lease or the subordination of a mortgage. In addition to any other conditions of default under such loan or loan guarantee, the minority-owned business shall be in default if such loan or loan guarantee is not used for the purposes set forth in subsection (b) of this section or if the minority-owned business fails to participate in the business management training program required under section 32-355.

      (e) Payments of principal and any interest on loans, interest-free loans and deferred loans made pursuant to subsection (b) of this section shall be deposited into the Micro-Loan Revolving Fund for Minority-Owned Businesses established under subdivision (2) of subsection (a) of this section.

      (f) The commissioner may adopt regulations, in accordance with chapter 54, to carry out the provisions of this section. Such regulations may provide for loan procedures, repayment terms, interest and security requirements, default and remedy provisions, and such other terms and conditions as the commissioner deems appropriate.

      (P.A. 99-208, S. 5; P.A. 01-10, S. 5.)

      History: P.A. 01-10 made a technical change in Subsec. (b).

      Sec. 32-355. Business management training program. Each minority-owned business that receives a loan or loan guarantee pursuant to section 32-354 shall participate in a business management training program as designated by the commissioner. The commissioner may establish a business management training program to be administered by either the Office of Small Business Affairs or a nonprofit corporation, as determined by the commissioner, and may arrange for the participation of such other programs as the commissioner deems appropriate in implementing the business management training program. The commissioner may enter into a contract with a nonprofit corporation to provide for the administration of the business management training program pursuant to this section.

      (P.A. 99-208, S. 6.)

      Sec. 32-356. Small business incubator program. Small Business Incubator Advisory Board. (a) For purposes of this section, "incubator facilities" shall have the same meaning as incubator facilities in section 32-34.

      (b) The Commissioner of Economic and Community Development shall establish the small business incubator program to provide grants to entities operating incubator facilities, as defined in section 32-34. The Department of Economic and Community Development may enter into an agreement, pursuant to chapter 55a, with a person, firm, corporation or other entity to operate such program. The department, or a program operator selected pursuant to this subsection, shall, subject to the availability of funds, operate a technology-based small business incubator program. In accordance with the written guidelines developed by the department, the department or program operator, if any, may provide grants to assist small businesses operating within incubator facilities. Grants made pursuant to this section shall be used by such entities to provide operating funds and related services, including business plan preparation, assistance in acquiring financing and management counseling.

      (c) An entity shall submit an application for a grant pursuant to this section in the manner prescribed by the Commissioner of Economic and Community Development.

      (d) There is established an account to be known as the small business incubator account, which shall be a separate, nonlapsing account within the General Fund. The commissioner may use funds from the account to provide administrative expenses and grants pursuant to this section.

      (e) (1) There is established a Small Business Incubator Advisory Board. Said board shall consist of: (A) The Commissioner of Economic and Community Development; (B) the president of the Connecticut Development Authority and the executive director of Connecticut Innovations, Incorporated, as ex-officio nonvoting members, or their designees; (C) one member to be appointed by the Governor; (D) two members with experience in the field of technology transfer and commercialization, to be appointed by the speaker of the House of Representatives; (E) two members with experience in new product and market development, to be appointed by the president pro tempore of the Senate; (F) one member to be appointed by the majority leader of the Senate; (G) one member to be appointed by the majority leader of the House of Representatives; (H) one member with experience in seed and early stage capital investment, to be appointed by the minority leader of the House of Representatives; and (I) one member with experience in seed and early stage capital investment, to be appointed by the minority leader of the Senate. All initial appointments to said board shall be made not later than September 1, 2007.

      (2) The Commissioner of Economic and Community Development shall schedule the first meeting of said board not later than October 15, 2007. Thereafter, the board shall meet at least once annually to evaluate and recommend changes to the guidelines adopted pursuant to this section.

      (P.A. 06-83, S. 5; June Sp. Sess. P.A. 07-4, S. 15.)

      History: P.A. 06-83 effective July 1, 2006; June Sp. Sess P.A. 07-4 amended Subsec. (b) to permit Department of Economic and Community Development to contract with an entity to operate program, to require department to develop guidelines for provision of grants and for department or operator to provide grants to assist small businesses operating incubator facilities, amended Subsec. (c) and deleted former Subsec. (d) to relieve commissioner from obligation to adopt regulations re process for grant application, redesignated existing Subsec. (e) as Subsec. (d) and amended same to delete provisions re moneys in account, and added new Subsec. (e) establishing Small Business Incubator Advisory Board, effective June 29, 2007.

      Secs. 32-357 to 32-379. Reserved for future use.