The bill outlines that the fund will be composed of legislative appropriations, federal funds, and other sources of monetary contributions that will be utilized specifically for loan issuance to eligible small businesses. The establishment of this program is expected to significantly enhance the financial stability of small businesses in Mississippi, as it allows them to access necessary liquidity during challenging times. The fund is designed to ensure that any remaining amounts at the end of the fiscal year will not lapse into the state’s general fund, enabling continuity of support.
Summary
House Bill 70 establishes the Small Business Bridge Loan Program under the Mississippi Department of Banking and Consumer Finance. This initiative is designed to provide short-term bridge loans to small business owners, facilitating financial assistance until they can secure further financing. The bill seeks to create a Special Fund known as the Small Business Bridge Loan Program Revolving Loan Fund, which will be exclusively managed by the department for the purpose of issuing these loans.
Contention
To qualify for a loan under this program, small businesses must have been operation for at least one year, and the amount of each loan is capped at $250,000. The terms of the loans can vary between ninety and one hundred eighty days, with the potential for extensions under specific circumstances. These stipulations aim to ensure prudent financial practices while also safeguarding the interests of both the borrowers and the state administration overseeing the fund.