Amend certain provisions relating to the small business credit initiative fund.
Impact
The proposed changes under SB180 specifically focus on increasing the flexibility and funding sources for the small business credit initiative. The bill allows the Governor's Office Board of Economic Development to accept various funding sources, including federal funds and private contributions, which could bolster the financial resources available for lending. Additionally, it gives the board authority to manage loans more effectively, including taking title to properties linked to these loans if necessary, thereby ensuring better recovery options for the state's investments.
Summary
Senate Bill 180 seeks to amend provisions relating to the small business credit initiative fund established within the state treasury. The bill aims to enhance the effectiveness of the fund, which is intended for making loans that facilitate economic development in South Dakota. It aligns with the Small Business Jobs Act of 2010, ensuring that state measures support local businesses' financial needs in evolving economic landscapes. The amendments proposed aim to modernize the fund's operational framework, addressing the current economic challenges faced by small businesses.
Contention
While the intent of SB180 is largely to support small business growth, there are potential points of contention. The amendments include provisions for confidentiality regarding the Board's deliberations on lending, which raises concerns about transparency in the decision-making process. Stakeholders may worry that keeping loan applications and financial details confidential could hinder public trust. Furthermore, the power given to the board to take possession of properties through foreclosure could also be perceived negatively, particularly if small businesses feel vulnerable under these regulations.