HB1372
To Encourage The Award Of Economic Development Funding To New Businesses And Businesses Established Within The Previous Five Years.
Last Action (Feb. 3, 2025): WITHDRAWN BY AUTHOR
Sponsors
AI-Generated Summary
House Bill 1372 mandates that the Arkansas Economic Development Commission encourage that at least five percent of economic development funding be directed toward supporting new businesses or programs that assist businesses established within the last five years. These eligible businesses must have their principal place of business in Arkansas to qualify under this initiative. The bill encompasses various forms of economic development funding, specifically noting community development block grants as an example. The legislation is designed to prioritize startup entities and early-stage companies in the allocation of state economic resources. If enacted, the provisions of this bill will become effective on January 1, 2027.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries include entrepreneurs launching new business ventures in Arkansas and small business owners whose operations have been established for five years or less. Additionally, organizations or programs that provide services, support, or development assistance to these early-stage companies stand to benefit from the dedicated funding allocations.
Who Might Suffer?
Established businesses that have been in operation for more than five years may be negatively impacted, as they could face increased competition for state economic development grants and funding. Additionally, administrators within the Arkansas Economic Development Commission may face potential administrative burdens or constraints in balancing the new funding priority against existing economic development commitments.
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