H1041 - Business Microloan Program Summary

• Joint Legislative Economic Development and Global Engagement Oversight Committee and Department of Commerce shall study establishing a microloan program for low-income entrepreneurs without access to commercial credit markets.

• Study must examine microloan term length (including whether six-month maximum is appropriate), maximum loan amount, interest rates, and income eligibility limits using adjusted gross income and federal poverty guidelines.

• Study shall determine whether additional program requirements should include business plan submission, participation in accountability group meetings, mandatory training, business training modules, and weekly repayment installments.

• Department of Commerce must report findings to the Committee by December 1, 2024, and Committee shall report findings with recommended legislation to the 2025 General Assembly.

• Ten thousand dollars ($10,000) in nonrecurring funds appropriated to the Department of Commerce for fiscal year 2024-2025; bill becomes effective July 1, 2024.