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Committee discusses BGAP funds, $2 million transfer to 'Vita' and creation of a disaster revolving loan fund
Summary
During FY26 markup the committee discussed C103 and an administration recommendation to shift part of $7 million in BGAP funds so $2 million seeds a revolving loan fund administered by an entity called 'Vita'; staff will follow up with ACCD and the administration for details.
Members of the House Appropriations Committee discussed a proposed reallocation of business grant/loan funds during the March 12 FY26 markup.
Committee members said the administration had proposed moving $2,000,000 of $7,000,000 in Business Growth and Agricultural Program (BGAP) money to an entity referred to in the transcript as "Vita" so that it could operate loans rather than issuing one-time grants. The committee discussed concerns about whether the administration sought to move existing BGAP money or to establish a new revolving mechanism and whether the same $2,000,000 appeared in both the budget (C103) and bill language (H.398).
A committee member said C103’s explanation establishes a natural-disaster revolving loan fund for businesses into law and that the BGAP money was previously treated as one-time grant funding. Members described the proposed change as creating a seed for a revolving loan fund that could be topped up later as disasters occur.
Committee members asked staff to check with the Agency of Commerce and Community Development (ACCD) and the administration about operational responsibility and why the proposal appeared in more than one place. They noted that an entity with revolving loan experience could underwrite loans and leverage funds to buy down rates, but that program details — interest rates, underwriting criteria and how the $2,000,000 would be used initially — were not specified in the transcript.
Committee members said Tom will follow up with ACCD and that staff will reconcile the budget and bill language after floor action.
