Revision: Jan. 19, 2023, 5:05 p.m.
SB 143-FN - AS INTRODUCED
2023 SESSION
23-0835
05/08
SENATE BILL 143-FN
SPONSORS: Sen. Altschiller, Dist 24; Sen. Perkins Kwoka, Dist 21; Sen. Watters, Dist 4; Sen. Whitley, Dist 15; Sen. Fenton, Dist 10; Sen. Rosenwald, Dist 13; Sen. Soucy, Dist 18; Sen. Prentiss, Dist 5; Sen. Chandley, Dist 11; Rep. Mangipudi, Hills. 11; Rep. Simpson, Rock. 33
COMMITTEE: Commerce
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ANALYSIS
This bill establishes a scholarship fund in the capital access program of the business finance authority to cover entry costs for socially and/or economically disadvantaged individual small business owners applying for loans from the program.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0835
05/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Short Title. This act shall be known as the New Hampshire Modern Economy Act of 2023.
2 Declaration of Purpose. There is a statewide need to improve access to capital and credit for New Hampshire's small businesses to ensure New Hampshire can compete in a modern economy and attract a modern workforce. New Hampshire small businesses are the backbone of our economy. They drive innovation and make immeasurable contributions to our local communities. Unfortunately, New Hampshire small businesses are often hardest hit during economic uncertainty and have the hardest time accessing financial capital and credit. While all Granite Staters should have equal opportunity to earn their success, there are significant disparities and persistent gaps in access to financial capital and credit. Therefore, it is the policy of New Hampshire to advance solutions to bridge opportunity gaps in access to financial capital and credit to ensure that everyone has an opportunity to succeed and grow their business.
3 New Section; Capital Access Program Scholarship. Amend RSA 162-A by inserting after section 12 the following new section:
162-A:12-a Capital Access Program Scholarship.
I. There is established in the office of the state treasurer a non-lapsing fund to be known as the capital access program scholarship (CAP) fund. Such fund shall be continually appropriated to the authority and shall not lapse. Such funds shall be used to cover the business borrower's fee or contribution to the CAP fund for business borrowers who meet the definition of a small business owned and controlled by socially and/or economically disadvantaged individual in the Small Business Act, 15 U.S.C. section 637.
II. Any small businesses owned and controlled by socially an/or economically disadvantaged individual who is otherwise eligible to participant in CAP shall be eligible to receive a scholarship from the capital access program scholarship program in paragraph I. The authority shall develop criteria and procedures to award scholarships from the capital access program scholarship fund.
4 New Subparagraph; Capital Access Program Scholarship Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (387) the following new subparagraph:
(388) The capital access program scholarship fund established in RSA 162-A:12-a.
5 Appropriation; Capital Access Program Scholarship Fund. The sum of $1,000,000 for the fiscal year ending June 30, 2024 is hereby appropriated to the business finance authority for deposit into the capital access program scholarship fund. The governor shall determine if any discretionary funds appropriated in the American Rescue Plan Act of 2021, Public Law 117-2, or any other federal funds, can be used for this purpose, and the executive director shall expend such federal funds for this purpose. Any remainder shall be appropriated from the general fund. The governor is authorized to draw a warrant for the general fund portion of such sum from any money in the treasury not otherwise appropriated. This appropriation shall be exempt from the repayment provisions of RSA 162-A:30.
6 Effective Date. This act shall take effect July 1, 2023.
23-0835
1/10/23
SB 143-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
Appropriation | $0 | $1,000,000 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | $1,000,000 | $0 | $0 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - Federal Funds | |||
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METHODOLOGY:
This bill establishes a Capital Access Program (CAP) Scholarship Program, administered by the New Hampshire Business Finance Authority (BFA) and a non-lapsing CAP Scholarship Fund in the State Treasurer's office. This fund shall be used to cover the business borrower's fee or contribution to the CAP fund for business borrowers meeting certain definitions. This bill also appropriates $1,000,000 to the BFA to deposit into the CAP fund. The Governor shall determine if any discretionary funds appropriated in the American Rescue Plan Act of 2021, Public Law 117-2, or any other federal funds can be used for the appropriation. Any remaining funds needed to fulfill the appropriation, that can't be filled by Federal funds, shall be appropriated from the State's General Fund. It is not known how quickly the BFA will expend CAP funds in the form of scholarships to eligible businesses.
AGENCIES CONTACTED:
None