Substitute Bill No. 6767 proposes the creation of a Disabled Veterans Revolving Loan Fund within the Small Business Express program, aimed at providing financial assistance to small businesses that are majority-owned by disabled veterans, defined as those with a disability rating of at least thirty percent. The bill allocates $2 million annually from the Small Business Express program's available funding for the fiscal years 2026 to 2030 to support this initiative. Loans ranging from $10,000 to $500,000 will be available to eligible businesses that have been operational for at least three years, with a maximum repayment rate of 4% over a term of up to ten years. The Department of Economic and Community Development (DECD) will administer the fund, ensuring that no more than 10% of the funds are used for administrative costs, and prioritizing applicants who create new jobs.

In addition to establishing the new fund, the bill repeals Section 32-7g and replaces it with updated language that includes various components of the Small Business Express program, such as a revolving loan fund for minority-owned businesses. The bill also modifies the program's structure, allowing the commissioner to collaborate with Connecticut-based banks and Connecticut Innovations, Incorporated for financial assistance, including loan guarantees and short-term loans. It mandates annual reporting to the General Assembly on the program's impact, including metrics on businesses assisted, job creation, and default rates. Furthermore, a "small business express assistance account" will be established within the General Fund to manage financial resources, ensuring that repayments and interest from loans contribute to the fund's assets. The act is set to take effect on July 1, 2025.

Statutes affected:
Committee Bill: 32-7g, 32-7h
VA Joint Favorable Substitute Change of Reference: 32-7g, 32-7h