The Legislature has passed a bill that would provide $50 million to the state’s Small Business Investment Corporation to provide loans to small enterprises not served by traditional banks.
The 39-19 House vote on Friday sends the bill to the governor for consideration. Democratic Gov. Michelle Lujan Grisham has expressed support concerning new state financing and investment in local businesses.
The initiative would double capitalization of the Small Business Investment Corporation using money from a multibillion-dollar state trust known as the Severance Tax Permanent fund.
Profits from the lender’s small loans would returned to the roughly $5 billion Severance Tax Permanent Fund. That fund originates from taxes on oil and mineral extraction and provides about $200 million a year to the state general fund.
Sign Up and Save
Get six months of free digital access to The Sacramento Bee