2023 Colorado Revised Statutes › Title 24 - GOVERNMENT - STATE (§§ 24-1-101 — 24-116-102) › OTHER AGENCIES (§§ 24-40-101 — 24-49.9-102) › Article 48.5 - OFFICE OF ECONOMIC DEVELOPMENT (§§ 24-48.5-101 — 24-48.5-706) › Part 6 - COLORADO LOANS FOR INCREASING MAIN STREET BUSINESS ECONOMIC RESILIENCY ACT (§§ 24-48.5-601 — 24-48.5-609) › Section 24-48.5-604 - [Effective 9/1/2024] Small business recovery loan program oversight board - creation - report - repeal

(1)
The small business recovery and resiliency loan program oversight board is hereby created in the division of business funding and incentives within the office to help establish and oversee the terms and conditions of a contract or contracts through which the office may provide first loss capital to a loan program or the Colorado credit reserve. This section does not prohibit a loan program manager of a specific loan program or the Colorado credit reserve from establishing a separate investment advisory committee for that loan program.
(2)
(a)
The oversight board consists of five members, as follows:
(I)
The state treasurer or the state treasurer's designee;
(II)
The director of the minority business office created in section
24-49.5-102
, on behalf of the office of economic development, or the director's designee;
(III)
One member appointed by the speaker of the house of representatives;
(IV)
One member appointed by the president of the senate; and
(V)
One member appointed by the governor.
(b)
The appointing authorities shall make their initial appointments to the oversight board no later than July 31, 2020.
(c)
The members appointed pursuant to subsection (2)(a) of this section must have substantial private sector experience in commercial banking or capital market activities and must have obtained executive-level positions in these industries.
(d)
The chair of the governor's council on economic stabilization and growth and the co-chairs of the council's financial services committee shall consult with and provide recommendations on initial appointments to the appointing authorities.
(3)
Each member of the oversight board who is appointed pursuant to subsection (2) of this section serves at the pleasure of the official who appointed the member. The term of appointment is three years. An appointed member may serve multiple terms. In the event of a vacancy in an appointed position on the oversight board, a new member must be appointed in the same manner as provided in subsections (2)(a)(III) to (2)(a)(V) of this section for the unexpired portion of the term.
(4)
Each member of the oversight board serves without compensation but is entitled to reimbursement for actual, reasonable, and necessary expenses incurred in the performance of the member's duties on the oversight board.
(5)
The state treasurer, or the state treasurer's designee, serves as the chair of the oversight board.
(6)
The oversight board shall meet at least once every quarter. The chair may call such additional meetings as are necessary for the oversight board to complete its duties.
(7)
The oversight board is a state public body subject to part 4 of article
6
of this title 24. In addition to any other requirements, the oversight board shall hold meetings open to the public, publish the agenda for each meeting in advance, keep and publish minutes from each meeting, provide advanced notification of meeting times to banking trade associations and other groups that request notification, and receive written and public testimony at each meeting.
(8)
The oversight board's activities with regard to a contract or contracts for the provision of state money for a loan program established in accordance with section 24-48.5-605 include, at a minimum:
(a)
Consulting with the office and the division of business funding and incentives within the office on the selection of a loan program manager;
(b)
In consultation with lending industry leaders and representatives of small businesses, determining specific terms applicable to a loan program as required in section 24-48.5-605, which terms must be designed in good faith to procure the participation of lending institutions and be consistent with regulatory requirements and underwriting criteria, including the duration of the geographic restriction of money in a loan program;
(c)
Providing guidance and input throughout the implementation of a loan program;
(d)
Establishing and publishing targets for the percentage of loans supported by a loan program that are made to businesses owned by women, minorities, and veterans and to businesses located in rural counties. In establishing the targets required by this subsection (8)(d), the oversight board shall consult with the minority business office within the office of the governor and with the division of business funding and incentives within the office.
(e)
Regularly reviewing progress in achieving the targets established pursuant to subsection (8)(d) of this section and making adjustments to a loan program to help achieve the targets if needed; and
(f)
Providing such additional oversight and creating policies and procedures as may be necessary to ensure that the program complies with the requirements of this part 6 and fulfills its purposes of supporting the state's recovery from the COVID-19 pandemic by assisting Colorado small businesses in recovering from the crisis caused by COVID-19 and of ensuring resiliency among small businesses as new challenges emerge.
(9)
The oversight board shall consult with small businesses in establishing the criteria for eligible borrowers pursuant to section 24-48.5-603 (4).
(10)
The oversight board shall adopt a conflict of interest policy for its members to prevent those who serve on the board from profiting or otherwise benefiting from eligible loans.
(11)
A member of the oversight board may assist in raising money or investments for a loan program without compensation.
(12)
(a)
The oversight board shall submit a written report on the implementation of the loan program to the joint budget committee. The oversight board shall submit its first report on or before November 30, 2020, and shall submit the report each six months thereafter for a period of two years. After the report submitted November 30, 2022, the oversight board shall submit the report annually, on or before November 30 of each year. The oversight board shall also submit the report once each year in fiscal years 2020-21 and 2021-22 to the business affairs and labor committee of the house of representatives and the business, labor, and technology committee of the senate, or any successor committees. Notwithstanding the requirement in section
24-1-136 (11)(a)(I)
, the requirement to submit the report required in this subsection (11) continues until this section is repealed.
(b)
The report must include, at a minimum, information on the following:
(I)
The number and size of loans made;
(II)
The geographic distribution of loans made;
(III)
The distribution of loans made by business sector;
(IV)
The demographics of the owners of the businesses receiving loans, including the number of businesses owned by women, minorities, and veterans;
(V)
The number of loans made to rural businesses;
(VI)
The size of the businesses receiving loans;
(VII)
The number of people employed by the businesses receiving loans;
(VIII)
Distributions or revenue received by the state from the program;
(IX)
The financial performance of the fund;
(X)
The default rates for loans made by the program;
(XI)
Borrower interest rates on the loans and an explanation of how the rates comply with the requirements of section 24-48.5-605 (4)(b)(V); and
(XII)
Any other information requested by the chair of the joint budget committee, or by the business affairs and labor committee of the house of representatives or the business, labor, and technology committee of the senate, or any successor committees.
(c)
The oversight board shall make a presentation to a joint meeting of the business affairs and labor committee of the house of representatives and the business, labor, and technology committee of the senate, or any successor committees, at least once each fiscal year or more often if requested by the chairs of the committees.
(13)
Renumbered from C.R.S. §
24-36-204
and amended by 2024 Ch. 355,§ 1, eff. 9/1/2024.
Added by 2020 Ch. 121, § 1, eff. 6/23/2020.
L. 2020: Entire part added, (HB 20-1413), ch. 507, p. 507, § 1, effective June 23.