Date: 03/31/2009

Final
BILL SUMMARY for SB09-067

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Moved to refer Senate Bill 09-067 to the CommitteePASS


12:03 PM -- Senate Bill 09-067

Representative Gagliardi, prime sponsor, presented Senate Bill 09-067 concerning the authority for the operation of the Colorado Credit Reserve Program. Representative Marostica, also a prime sponsor of Senate Bill 09-067, was presenting a bill in the Agriculture, Livestock, and Natural Resources Committee. The bill authorizes the Colorado Economic Development Commission to contract with the Colorado Housing and Finance Authority for the operation of a program to increase the availability of credit to small businesses in Colorado. It also provides $2.5 million in FY 2009-10 from the state General Fund for this purpose. Representative Gagliardi responded to questions from the committee.

12:09 PM --
Matthew Cheroutes, representing the Governor's Office of Economic Development and Economic Trade, testified in support of the bill. Mr. Cheroutes responded to questions from the committee.

12:12 PM --
Tony Gagliardi, representing the National Federation of Independent Businesses, testified in support of the bill. He talked about the difficulty businesses are having obtaining credit from banks since they began tightening up on loan requirements. Mr. Gagliardi said the bill will help small businesses and microloans under $25,000.

12:16 PM --
Jenifer Saltzman, representing the Colorado Bankers Association, testified in support of the bill. She said the bill enables banks to make loans to marginal borrowers. Ms. Saltzman was asked to explain what she meant by "marginal". She explained that marginal is referring to borrowers who would have qualified a year or so ago for a loan but do not now because the lending standards have been tightened. Representative Ryden asked Ms. Saltzman to explain how banks would work with the Colorado Housing and Finance Authority to provide these loans.

12:20 PM --
Steve Johnson, representing the Colorado Housing and Finance Authority, testified in support of the bill. He further explained the use of the term "marginal". He mentioned that this type of program has been around in 20 other states. Mr. Johnson responded to an earlier question of why the 1993 program is no longer around and how the banks will work with the Colorado Housing and Finance Authority.
BILL:SB09-067
TIME: 12:24:58 PM
MOVED:Gagliardi
MOTION:Moved to refer Senate Bill 09-067 to the Committee on Appropriations. The motion passed 11-0.
SECONDED:Priola
VOTE
Balmer
Yes
Bradford
Yes
Gagliardi
Yes
Liston
Yes
Priola
Yes
Ryden
Yes
Scanlan
Yes
Soper
Yes
Stephens
Yes
Casso
Yes
Rice
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS