This bill was held in the House Economic Development and Workforce Services Committee.
Funded by taxpayer dollars, House Bill 386 would create a pool of money that is accessible for businesses to take loans from. Representative Douglas Sagers has introduced this bill which intends to stimulate the growth of high paying jobs. It would create a pool of money enabling businesses to receive taxpayer-backed loans. The funds would eventually have to be paid back with interest.
HB 386 would redirect 1.3% of sales tax revenue, shifting it away from existing uses (and thus potentially increasing a desire among some to raise tax rates to offset this loss).
This bill is completely unnecessary because the private market has numerous options available for businesses who lack capital for growth. Taxpayers should not be treated as a bank for businesses to raise money from. It is not the proper role of government to compete with the private market while risking taxpayer dollars in this manner.
