PA 13-45—HB 6466

Commerce Committee

AN ACT CLARIFYING COLLATERAL REQUIREMENTS FOR APPLICANTS FOR FINANCIAL ASSISTANCE FROM THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT AND CONNECTICUT INNOVATIONS, INCORPORATED

SUMMARY: By law, most businesses that apply for financial assistance from the Department of Economic and Community Development and Connecticut Innovations, Inc. must provide these agencies with collateral, such as a letter of credit; a lien on real property; or a security interest in equipment, inventory, or other property.

This act exempts economic development grant applicants from providing collateral, regardless of the grant's term. Prior law exempted only applicants for grants with terms of less than one year. Loans for less than one year and equity investments are exempt from the collateral requirement under existing law.

EFFECTIVE DATE: Upon passage

OLR Tracking: PF: JR: TA: RO