Capital: Small Businesses Need It For Job Growth

(April 11) – A bill to study the availability of capital for small businesses passed the House today on second reading.

HB13-1253, sponsored by Rep. Pete Lee (D-Colorado Springs), directs the Office of Economic Development & International Trade to contract for a study on the availability of, need for, barriers to and acquisition of capital for Colorado small businesses.

“This bill really is about creating jobs,” Rep. Lee said. “Small businesses need access to capital, and unfortunately, that access isn’t there or they aren’t getting it. We need to know why. And once we know why, we can make informed policy decisions that will help businesses get the capital they need to grow and create jobs.”

A 2012 Pepperdine University study found that small business owners said the best spur to U.S. job creation was increased access to capital. Many options already exist to access capital but most businesses and entrepreneurs are often unaware of these resources.

The study proposed by this bill will survey Colorado small businesses, lenders, capital creators and develop recommendations for increasing access to capital, leveraging existing resources and expanding opportunities for sustainable economic development, job growth and wealth creation.

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