HB 22-1328 Summary

• Reduces minimum employee requirement for eligible borrowers from five to one employee, while maintaining the upper limit of fewer than one hundred employees.

• Changes positive cash flow requirement from two consecutive years to one year prior to February 29, 2020, as determined by the oversight board.

• Extends state treasurer authority to provide first loss capital from $30 million in fiscal year 2021-22 to a total of $40 million across fiscal years 2021-22, 2022-23, and 2023-24.

• Lowers minimum loan amount from $30,000 to $10,000 and extends maximum loan maturity from five to ten years; adds equipment purchase as eligible use of working capital loans.

• Extends program timeline by delaying fund repeal from December 31, 2033 to December 31, 2040, with final fund transfer to general fund by June 30, 2037.