CO HB1266

Creates the Small Business Capital Authority as a special purpose authority to improve Colorado small businesses' access to capital through a state fund and private capital exchanges.

Directs the authority to annually raise and deposit at least $50 million into a state fund at Colorado banks, used as a revolving fund for seed and early-stage investment capital to small businesses.

Requires fund operators selected by competitive bid to provide matching funds equal to or greater than state fund revenues and make investments based on weighted scoring favoring job creation, wage levels, and export potential.

Authorizes the Division of Securities to license private capital agents to negotiate purchases and sales of Colorado private securities, and requires private capital exchanges to pay 1% of transaction value to the authority.

Establishes investment requirements including 20% of funds in amounts up to $25,000 and 80% in amounts up to $250,000, with small businesses repaying through royalties starting 12 months after investment at minimum 3% of revenues capped at 200% of the investment.