HB 22-1328

HB 22-1328 modifies Colorado's Main Street Business Recovery Loan Program, which provides small business recovery loans. The bill extends the loan program until 2024 and allows for more flexible lending by lowering the minimum loan amount to $10,000 from $30,000 and extending loan terms up to 10 years. It also makes it easier for smaller businesses with fewer employees to qualify and clarifies support for disadvantaged business owners. The bill has been signed into law, meaning these changes are now in effect and will help more small businesses access loans they need to recover from economic challenges.

Official Summary

The act adjusts various requirements applicable to the "Colorado Loans for Increasing Main Street Business Economic Recovery Act" (program) that provides small business recovery loans to Colorado businesses, funded in part through the sale of insurance premium tax credits. The act: Extends the period through which the program can issue capital for the loan program through fiscal year 2023-24; Increases the amount of capital that can be issued in the last 3 fiscal years of the program without increasing the total amount that can be issued for the life of the program; Lowers the minimum amount of a loan to a small business from $30,000 to $10,000; Lengthens the maximum initial maturity of a loan to a small business from 5 years to 10 years; Changes the requirements for an eligible borrower to require one year of positive cash flow instead of 2, and at least one employee instead of at least 5 employees; Clarifies the benchmarks that apply to the program for making loans to businesses owned by socially and economically disadvantaged individuals; Extends the time for the program to issue tax credits through state fiscal year 2022-23; Extends the period through which the program can issue tax credits through fiscal year 2022-23 without changing the total amount of tax credits that can be issued over the life of the program; Allows tax credits issued in fiscal years 2021-22 and 2022-23 to be claimed on a schedule beginning in a taxable year that begins on or after January 1, 2023; and Removes a requirement that if additional state or federal money is appropriated or allocated to the program, the value of the tax credits authorized by the program must be reduced by the same amount.(Note: This summary applies to this bill as enacted.)

Votes