HB 6767 — AN ACT CONCERNING A DISABLED VETERANS REVOLVING LOAN FUND.

Moneys from such funds shall be used to (A) provide loans to eligible disabled veteran-ownedbusinessesthathavebeenformedforatleastthreeyears, as reflected in the records of the Commercial Recording Division of the office of the Secretary of the State, prior to the provision of any such loan, and(B) fundtheadministrative costsassociatedwiththeprovision of such loans by a disabled veteran business development entity, provided a disabled veteran business development entity may not use more than ten per cent of the amount received as a grant under this section to fund such costs.

Such loans shall be used for acquisition or purchase of machinery and equipment, construction or leasehold improvements, relocation expenses, working capital, which may be used for payment of rent, or other business-related expenses, as authorized by the disabled veteran business development entity.

(3) Loans from a disabled veteran business revolving loan fund may be in amounts from ten thousand dollars to amaximum of five hundred thousand dollars, shall carry a maximum repayment rate of four per cent and shall be for a term of not more than ten years.

The disabled veteran business development entity shall review and approve loan terms, conditions and collateral requirements in a manner that prioritizes job growth and retention.

(4) Any eligible disabled veteran-owned business may apply for LCO No.

5278 5 of 9 Committee Bill No.6767 assistance from a disabled veteran business revolving loan fund, provided the disabled veteran business development entity shall give priority to applicants that, as part of their business plan, are creating new jobs that will be maintained for not less than twelve consecutive months.

(5) Loans from a disabled veteran business revolving loan fund shall be provided in such a manner that, on or before five years after the date such loan fund is established, the annual funds or revenues derived frominvestment income, loanrepaymentsor any other sourcesreceived by the disabled veteran business development entity in connection with such loan fund is sufficient to fund the administrative costs associated with such loan fund.

(6) A disabled veteran business development entity receiving a grant pursuant to this subsection shall annually submit to the commissioner a financial audit of grant expenditures until all grant moneys have been expended by such entity.

Any such audit shall be prepared by an independent auditor and if the commissioner finds that any such grant is used for purposes that are not in conformity with uses set forth in subdivisions (2) and (3) of this subsection, the commissioner may require repayment of such grant.

[(e)] (f) The commissioner, in consultation with representatives from Connecticut-based banks and a banking industry association, may establish as part of the Small Business Express program a component operated in collaboration with Connecticut-based banks, which may include, but need not be limited to, loan guarantees, short-term loans used as a bridge to private sector financing and the transfer of loans issued under subsection (c) of this section.

Any loans issued under such component shall be used for acquisition or purchase of machinery and equipment, construction or leasehold improvements, relocation expenses, working capital, which may be used for payment of rent, or other business-related expenses, as authorized by the commissioner.

The provisions of subsections (c), [and] (d) and (e) of this section shall LCO No.

5278 6 of 9 Committee Bill No.6767 not be construed to apply to such component.

Such component shall be administered by Connecticut Innovations, Incorporated, in collaboration with the Department of Economic and Community Development.

For purposes of this section, "Connecticut-based banks" means banks and out-of-state banks, each as defined in section 36a-2, having deposit-taking branches in the state.

[(f)] (g) The commissioner, in consultation with Connecticut Innovations, Incorporated, may establish as part of the Small Business Express program a component operated in collaboration with Connecticut Innovations, Incorporated, which may include, but need not be limited to, financial assistance consistent with the provisions and purposes of sections 32-23e, 32-23ii and 32-265.

Such component may be administered by Connecticut Innovations, Incorporated, in collaboration with the Department of Economic and Community Development.

[(g)] (h) Not later than February 1, 2022, and annually thereafter, the commissioner shall provide a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, appropriations,commerce andlabor.Suchreport shallinclude available data on (1) the number of small businesses that received assistance under the Small Business Express program and the general categories of such businesses, (2) the amounts and types of assistance provided, (3) the total number of jobs on the date of application and the number proposed to be created or retained, (4) the most recent employment figures of the small businesses receiving assistance, (5) the default rate of small businesses that received assistance under said program, and (6) the progress of the lenders participating in said program in becoming self-sustainable.

The contents of such report shall also be included in the department's annual report.

[(h)] (i) The commissioner may contract with nongovernmental entities, including, but not limitedto,nonprofit organizations,economic LCO No.

5278 7 of 9 Committee Bill No.6767 and community development organizations, lending institutions, and technical assistance providers to carry out the provisions of this section.

Sec.

2.

Section 32-7h of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2025):

(a) There is established an account to be known as the "small business express assistance account" which will be a separate, nonlapsing account within the General Fund.

The account shall contain any moneys required by law to be deposited in the account.

Repayment of principal and interest on loans shall be credited to such fund and shall become part of the assets of the fund.

Moneys in the account shall be expended by the Department of Economic and Community Development for the purposes of the Small Business Express program established pursuant to section 32-7g, as amended by this act.

Except as provided in [subsection (d)] subsections (d) and (e) of section 32-7g, as amended by this act, all moneys received for the purposes of the Small Business Express program and payments of principal and interest on any loans given under said program shall be credited to the account.

(b) Except as provided in [subsection (d)] subsections (d) and (e) of section 32-7g, as amended by this act, the Commissioner of Economic and Community Development may provide for the payment of any administrative expenses or other costs incurred by the department or its lender partners in carrying out the purposes of the Small Business Express program not to exceed five per cent of funding from this program from the account established pursuant to subsection (a) of this section, providedoneper cent shall be dedicated to develop capacity for capital construction projects for minority business enterprises.

This act shall take effect as follows and shall amend the following sections:

Section 1 July 1, 2025 32-7g July 1, 2025 Sec.

2 32-7h LCO No.

5278 8 of 9 Committee Bill No.

6767 Statement of Purpose:

To establish, as part of the Small Business Express program, at least one revolving loan fund to provide loans to eligible small businesses of which greater than fifty per cent are owned by one or more disabled veterans.

[Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] Co-Sponsors:

FOSTER, 57th Dist.Dist.;

ANH.B. ACT CONCERNING VETERAN-OWNED BUSINESSES AND SET- ASIDE PROGRAMS FOR STATE CONTRACTS.

Be6767 itLCO enactedNo. by the Senate and House of Representatives in General Assembly convened:

That5278 section9 4a-60g of the9 general statutes be amended to expand eligibility for state contract set-aside programs to veteran-owned businesses.

Statement of Purpose:

To expand eligibility for state contract set-aside programs to veteran- owned businesses.

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