Committee approves compromise to raise BFA contingent credit cap to $400 million

Lawmakers in the division advanced House Bill 1042 as amended, approving a compromise that raises the unified contingent credit limit applicable to New Hampshire Business Finance Authority projects to $400 million.

Representative Sweeney moved that the committee recommend House Bill 1042 ought to pass and described testimony from the executive director of the Business Finance Authority (BFA) and the state treasurer about how a contingent line of credit functions. Supporters said the BFA has a long history without having to pay on guarantees and that the loss rate has been maintained under 1 percent. Opponents, including Representative Run, argued that more than doubling the credit limit increases state exposure and presented fiduciary concerns; Run said there was no urgency and that the state was already at an adequate $200 million cap.

After an initial postponement and a brief recess, the committee reconvened and the chair introduced Amendment 20260856H to lower the top-line figure from $450 million to $400 million. The committee approved the amendment by voice/show-of-hands and then voted to report the bill 'ought to pass as amended' (OTPA). The clerk read the roll; the chair announced the final tally as 6-1 in favor of passage as amended.

Proponents framed the amendment as a compromise that preserves BFA flexibility while reducing the state's maximum exposure; opponents continued to caution about potential liability in a deep recession or default scenario. The committee closed the executive session and adjourned after the recorded vote.