Signed by Governor Jared Polis

Vote Smart's Synopsis:

Vote to pass a bill that establishes a small business tax credit for the COVID-19 Response.

Highlights:

• Establishes a Small Business Recovery Loan Program Oversight Board (Sec. 1).

• Authorizes the creation of a small business recovery loan program seeded by money provided by the state to support Colorado’s small businesses affected by the COVID-19 crisis and to assist in the overall economic recovery of the state (Sec. 1.l).

• Requires reports from Oversight Board to include the following (Sec. 1.12.b):

• The number and size of loans made;

• The geographic distribution of loans made;

• The distribution of loans made by business sector;

• The demographics of the owners of the businesses receiving loans, including the number of businesses owned by women, minorities, and veterans; 

• The number of loans made to rural businesses;

• The size of the businesses receiving loans; 

• The number of people employed by the businesses receiving loans; 

• Distributions or revenue received by the state from the program;

• The financial performance of the fund;

• The default rates for loans made by the program; 

• Borrower interest rates on the loans and an explanation of how the rates comply with the requirements of section; and 

• Any other information requested by the chair of the joint budget committee, the business affairs and labor committee of the house of representatives or any successor committee, or the business, labor, and technology committee of the senate or any successor committee.

• Authorizes the limited use of state money obtained through the sale of insurance premium tax credits that will be incurred to support the program (Sec. 2.a).

• Requires the insurance premium tax credits authorized by this Part 2 as a method to provide money to the loan program are available only to insurance companies that incur premium tax liability in the state and that (Sec. 3.a):

• The tax credits can only be used by an insurance company to offset tax liability actually incurred by the insurance company; and

• The tax credits are not refundable and do not impose an obligation of payment in any future year upon the state.

Full Bill Text