Colorado Legislative Council Staff

STATE

CONDITIONAL FISCAL NOTE

Cash Fund Revenue and Expenditure Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-636

Sen. Dennis

Date:

Bill Status:

Fiscal Analyst:

February 7, 1998

Senate Business Affairs

Harry Zeid (866-4753)

 

TITLE:            CONCERNING A GRANT MADE TO THE STATE BOARD FOR COMMUNITY COLLEGES AND OCCUPATIONAL EDUCATION TO ESTABLISH A SMALL BUSINESS DEVELOPMENT REVOLVING LOAN FUND.


Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

SBCCOE Fund



 *



 *

State Expenditures

General Fund

SBCCOE Fund



 *



 *

FTE Position Change

None

None

Local Government Impact — None

             *The source for program funding is not identified in the bill.


            This bill would create an account within the State Board for Community Colleges and Occupational Education Fund to be known as the Colorado Small Business Account. The State Board for Community Colleges and Occupational Education (SBCCOE) would use the fund to make grants to qualified nonprofit small business assistance organizations. A small business assistance organization would be defined as a 501 (c)(3) organization that submits a grant application to the board that demonstrates the organization’s ability to provide business counseling and business related services for loan applicants. The organization must be willing to develop a partnership for the purpose of establishing a micro loan program to provide business planning, training, mentoring, outreach, and development.


            SBCCOE would be authorized to distribute grants from the Colorado Small Business Account to qualified small business assistance organizations. SBCCOE would develop a formula for the distribution of moneys appropriated to maximize the amount of money distributed to areas of the state that suffer from unemployment, underemployment, economic distress, low productivity, or employment dislocation. Moneys granted by SBCCOE to small business assistance organizations would be used to make loans to private persons and entities for use in small business development. Small business assistance organizations may be reimbursed for the costs of the creation of the organization in an amount not to exceed $5,000. SBCCOE would annually submit a report to the Joint Budget Committee regarding loans made from funds granted for this purpose.


            The bill does not provide a funding mechanism for the Colorado Small Business Account. Fiscal impact is assessed as being conditional upon moneys being made available for the purpose of establishing grants for qualified nonprofit small business assistance organizations. The bill would become effective upon signature of the Governor.



State Revenues and Expenditures


          The bill would create the Colorado Small Business Development Account within the State Board for Community Colleges and Occupational Education (SBCCOE) Fund. SBCCOE would distribute moneys in the account in the form of grants to qualified small business assistance organizations. A formula for the distribution of the moneys appropriated for this purpose would be developed to maximize the amount of moneys to be distributed to areas that meet certain economic criteria. SBCCOE would administer the requirements of the bill within the existing resources and workload of the organization. The bill is assessed as having no fiscal impact beyond the amount of state funds that may be appropriated for the purpose of funding grants. The funding source for the program is not identified in the bill. Therefore, fiscal impact of the bill is conditional upon moneys being appropriated for grants.



Spending Authority


            The fiscal note would imply that no appropriations or spending authority are required in FY 1998-99 to implement the provisions of the bill.



Departments Contacted


          Colorado Commission on Higher Education