HB1372
To Encourage The Award Of Economic Development Funding To New Businesses And Businesses Established Within The Previous Five Years.
AI-Generated Summary
This bill, Arkansas House Bill 1372, aims to encourage economic development funding towards newer businesses. It mandates that the Arkansas Economic Development Commission ensure at least five percent of funds allocated for economic development programs are directed towards supporting either new business startups or businesses that have been in operation for less than five years. These organizations or programs must focus on aiding individuals who are starting new businesses within Arkansas or providing services to businesses with their principal place of business in the state and established within the last five years. The legislation explicitly includes community development block grants within the scope of these economic development programs. The bill also specifies that this new provision will become effective on January 1, 2027. It does not codify the temporary language regarding the effective date. The intent is to prioritize and foster the growth of nascent enterprises in the state.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be individuals looking to start new businesses in Arkansas and businesses that have been established within the last five years and have their principal place of business in the state. This includes entrepreneurs and their ventures, as well as organizations that provide services to these newer businesses. The bill aims to direct a specific portion of economic development funding towards these entities, potentially increasing their access to financial resources, support programs, and services crucial for their initial growth and establishment.
Who Might Suffer?
While the bill is designed to encourage support for new and recent businesses, it could indirectly impact established businesses that have been operating for more than five years. By earmarking a minimum of five percent of economic development funding for newer entities, this allocation might represent a reduction or shift away from funding that could have otherwise been available to older, more established businesses seeking economic development support. This could mean that existing businesses, even those contributing significantly to the state's economy, might face increased competition for available funding or experience a decrease in the overall pool of funds accessible to them.