Appropriations Committee considers pilot to advance grant funds to small nonprofits

Committee staff briefed a proposed substitute to House Bill 2587 that would establish a pilot at the Department of Commerce to provide initial distributions to nonprofit grant recipients who demonstrate need to deliver services under state contracts. Staff outlined eligibility criteria (nonprofit status, award received within six months, satisfactory prior performance, minimum three years in the relevant business, and grant purpose aligned with public health, safety or welfare). Commerce would prioritize organizations with average annual budgets under $5 million, require enforceable contracts protecting state interests before any advance, and limit initial distributions to a one‑time payment equal to the lesser of 25% of the award or $200,000.