Committee approves emergency bridge-loan program for small businesses after disasters

The Minerals, Business & Economic Development Committee voted to advance Senate File 195, a bill establishing a Small Business Emergency Bridge Loan Program designed to provide short-term, 0% interest loans to small businesses located in counties declared disaster areas.

Senator Beitman, who presented the bill with Vice President Salazar, said the idea grew from experience responding to wildfires and other disasters. "This program aims to provide short term bridge loans to small businesses affected by declared natural disasters," he said, describing loans as a way to keep businesses operating while they await federal or insurance assistance.

Key provisions as discussed and amended in committee: - Eligibility: businesses must be physically located in Wyoming in a county declared a disaster by the governor, must have been operational before the disaster and at least 50% owned by one or more individuals. A minimum credit score of 550 and collateral are required. - Loan terms and caps: loans are secured, repayable within up to three years, and capped at $750,000 per business (committee amendment reduced an earlier higher cap). The program is structured as a revolving fund. - Funding and fees: the initial appropriation discussed in committee was amended from $50 million to $25 million. Participating lenders are to be paid an origination fee split 1% to the lender and 1% to the state to cover administration costs. - Administration: committee members amended the bill to assign administration to the Office of State Lands and Investments (OSLI). The bill originally envisioned Department of Agriculture administration; committee members debated timeliness and the agency best able to implement rapid approvals. - Uses: funds are limited to business purposes with a non‑exhaustive list (as amended): fence repair, replacement of livestock, replacement of buildings/shelters, business vehicles and equipment damaged or destroyed, inventory replacement, leasing of land for business purposes, necessary trucking and transportation expenses. The committee inserted the phrase "but not limited to" and broadened several references to ensure applicability beyond strictly agricultural uses.

Committee witnesses included representatives of the Wyoming Stockgrowers Association and Wyoming Bankers Association, local bankers and residents. Supporters — including stockgrowers, county treasurers and credit-union representatives — emphasized speed and local delivery through banks; a number of testifiers said timely small-dollar disbursements after fires and other disasters were critical for survival of operations. The Wyoming Bankers Association said banks and local lenders would be the front line for underwriting and processing, and urged careful attention to underwriting and risk controls.

Committee action: Representative Weber moved to advance the bill as amended; Representative Tarver seconded. Roll call recorded ayes from Representatives Campbell, Knapp, Larson, Volley, Schmidt, Tarver, Weber and Chairman Heiner; one member was excused. The committee recorded the vote as 8 ayes, 0 noes, 1 excused. The bill was passed out of committee as amended and will go forward to the floor.

Implementation issues committee members flagged included rulemaking timelines, whether the administering agency can approve loans promptly (testifiers urged delegating approval authority to the agency director rather than requiring SLIB meeting approval), and the need to clarify acceptable collateral beyond insurance proceeds (committee added "other anticipated funds" during amendment). Several members suggested delegating finer eligibility and cap details to rulemaking to allow flexible, timely implementation.

Ending: Committee members expressed broad support for a program that could provide a quick lifeline to small businesses after disasters while reserving more complex grant programs or longer-term recovery measures for later action. The measure now moves to appropriations/floor consideration with the $25 million appropriation and the amendments made in committee.