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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 56

SOURCES OF INFORMATION

LFC Files

Economic Development Department

SUMMARY

Synopsis of Bill

The bill appropriates $295.0 general fund in FY2000 to the Economic Development Department (EDD) to contract for business incubation services. Unexpended balances at the end of FY2000 would revert.

Significant Issues

There are many business incubators in New Mexico which help small businesses to become financially viable. Business incubators help entrepreneurs to develop innovative concepts and in the process create new jobs, new wealth, and economic development. Incubators generally provide hands-on management assistance, access to financing and orchestrated exposure to critical business or technical support services. They also generally offer entrepreneurial firms shared office services, access to equipment, flexible leases and expandable space.

FISCAL IMPLICATIONS

According to EDD, that agency will not incur additional overhead costs to administer the funds in this bill. The agency will act as a fiscal agent. Funds will be passed on through a contractual agreement.

DH /gm