Sec. 32-354. Micro-loan program for minority-owned businesses.
Sec. 32-354. Micro-loan program for minority-owned businesses. (a) (1) There
is established a micro-loan program for minority-owned businesses. The commissioner
may enter into a contract with a quasi-public agency, financial institution or nonprofit
corporation to provide for the administration and the state-wide promotion of the program. On or before July 1, 2001, the program shall be a self sustaining revolving loan
fund. No loan or loan guarantee that is not in accordance with the provisions of such
contract shall be made from the fund established under subdivision (2) of this subsection.
(2) There is established a fund to be known as the "Micro-Loan Revolving Fund
for Minority-Owned Businesses". The fund shall contain (A) any moneys allocated
pursuant to subdivision (3) of this subsection, and (B) any moneys required by law to
be deposited into the fund, including, but not limited to, any moneys appropriated by
the state and interest payments and principal payments on loans. Any balance remaining
in the fund at the end of any fiscal year shall be carried forward in the fund for the
next succeeding fiscal year. The fund shall be used to make loans and loan guarantees
pursuant to subsection (b) of this section and to pay reasonable and necessary expenses
incurred in administering such loans and loan guarantees and the program established
under this subsection.
(3) The commissioner may allocate moneys from the Economic Assistance Revolving Fund, established under section 32-231, to the fund established under subdivision
(2) of this subsection.
(b) The state, acting by and in the discretion of the commissioner, may, pursuant
to a contract entered into under subdivision (1) of subsection (a) of this section, provide
funds to a quasi-public agency, financial institution or nonprofit corporation to be used
by such quasi-public agency, financial institution or nonprofit corporation to make loans,
interest-free loans, deferred loans or loan guarantees to minority-owned businesses. Any
such loan or loan guarantee shall be used by the minority-owned business for business
start-up costs or the day-to-day operation of the business. The proceeds from any loan
made pursuant to this subsection shall not be used for the refinancing of existing loans.
(c) The amount of any loan made pursuant to subsection (b) of this section shall
not exceed fifty thousand dollars. The amount of any loan guarantee made pursuant to
subsection (b) of this section shall not exceed thirty per cent of the principal amount.
(d) Each minority-owned business applying for a loan or loan guarantee under subsection (b) of this section shall submit an application in such form and containing such
information as the commissioner shall require. Security for such loan may include a
security interest, an assignment of a lease or the subordination of a mortgage. In addition
to any other conditions of default under such loan or loan guarantee, the minority-owned
business shall be in default if such loan or loan guarantee is not used for the purposes
set forth in subsection (b) of this section or if the minority-owned business fails to
participate in the business management training program required under section 32-355.
(e) Payments of principal and any interest on loans, interest-free loans and deferred
loans made pursuant to subsection (b) of this section shall be deposited into the Micro-Loan Revolving Fund for Minority-Owned Businesses established under subdivision
(2) of subsection (a) of this section.
(f) The commissioner may adopt regulations, in accordance with chapter 54, to carry
out the provisions of this section. Such regulations may provide for loan procedures,
repayment terms, interest and security requirements, default and remedy provisions,
and such other terms and conditions as the commissioner deems appropriate.
(P.A. 99-208, S. 5; P.A. 01-10, S. 5.)
History: P.A. 01-10 made a technical change in Subsec. (b).