Pacific Council: Small Business Start-Up Loan Act (Debating)

[DemPGH]

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Sponsor: Politics Junkie

Okay, let's try to debate this.

So a loan of 100K at 5% interest is to be paid back in 5 years? Is that realistic? And of course a business is not guaranteed to be lucrative, so I don't know.

[PJ]

This is to aid small businesses starting in the Pacific Region. I would be open to increasing or decreasing the amount of time in which the loans can be payed back if you have any concerns.

[DemPGH]

Let's change the terms of the loan a bit and I'll support this. if we're going to reverse course, it will start with things like this. Any ideas?

[Flake]

Genuine question: can we amend the bill even though PJ isn't here anymore? Don't we have to ask the person who introduced the bill if the amendment is friendly or not?

[DemPGH]

Genuine question: can we amend the bill even though PJ isn't here anymore? Don't we have to ask the person who introduced the bill if the amendment is friendly or not?

I'll allow it considering the circumstances, and in fact I or someone should take over sponsorship. It doesn't really matter to me who takes over, but someone should.

Alrighty... I think this would work better if we make the money available to banks or lending agencies because they are the ones used to handling loans. Then, have them submit an application justifying the loan plan and limit the loans to businesses with 15(?) or fewer employees and/or below a certain threshold of assets (I have no idea how much, but I think using employees is a better benchmark because currency values fluctuate, but numbers of employees don't really change that much).

...I'm not sure we really need to limit it to just start up businesses, but to help them, we could also make a fixed amount of small business start up costs deductible for tax purposes (like say $10,000).

Not sure if the terms really need to be set by the legislature, but if we're doing this bill because of the stimulus, we could just increase the pot of available loans.

Sounds great, and I like the part in bold.

[Fed. Pac. Chairman Devin]

This looks good. When can we move it to a final vote?

[Flake]

I guess now if nobody has any objections.

[Flake]

Please vote Aye, Nay, or Abstain.

[Flake]

Aye

[Fed. Pac. Chairman Devin]

Aye

[DemPGH]

I would have preferred Siren's amendment, but we're supposed to spend money, so let's do it! There should be return on this too.

[Fed. Pac. Chairman Devin]

I would have preferred Siren's amendment, but we're supposed to spend money, so let's do it! There should be return on this too.

Does the whole council have to vote?

[Flake]

I would have preferred Siren's amendment, but we're supposed to spend money, so let's do it! There should be return on this too.

Does the whole council have to vote?

I believe we can close the vote in 24 hours after the start of the vote.

[DemPGH]

I would have preferred Siren's amendment, but we're supposed to spend money, so let's do it! There should be return on this too.

Does the whole council have to vote?

Requirement is 2/3. I probably won't be back on until tomorrow, but I can support it.

I would have preferred Siren's amendment, but we're supposed to spend money, so let's do it! There should be return on this too.

Does the whole council have to vote?

I believe we can close the vote in 24 hours after the start of the vote.

Sounds good.

[Flake]

Voting is closed.

2 ayes (Flo, Devin). 1 not voting (Siren).

This bill has passed and will now go to the Governor for his signature.

[Flake]

DemPGH? Will you sign or veto the bill?

[DemPGH]

Okay, I'm offering a rewrite on this, and I apologize for the delay. Also, I'd appreciate it if someone would look into clause 4 - I can this afternoon, but not at the moment.

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[Cranberry]

I don't have numbers in this exact area, regarding clause 4, but interest rates for student loans are for graduates and adults in about the same height, a bit higher however.
This program shares some similarities to our business start-up loans, as the common ground is to provide opportunities; so I think interest rates should be similar to those.
So I think interest rates of 5 percent is about a realistic number.

[Flake]

Council, please vote on the proposed Amendment.

Okay, I'm offering a rewrite on this, and I apologize for the delay. Also, I'd appreciate it if someone would look into clause 4 - I can this afternoon, but not at the moment.

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[Fed. Pac. Chairman Devin]

Aye

[Flake]

Aye

[Cranberry]

Aye

[DemPGH]

So does this look good, then? Everybody is satisfied with the 50 million - not too high? If everything checks, I'm ready to sign.

[Flake]

The vote passes 3-0-0.

[Flake]

Councilors, please vote Aye, Nay, or Abstain on the bill.