Economic Development - Small, Minority, and Women-Owned Business Accounts - Management Fees (Small Business Increased Access to Capital Act)

HB 798, the "Small Business Increased Access to Capital Act," allows eligible fund managers to charge management fees based on loans made to small, minority, and women-owned businesses. Specifically, it authorizes fees of 1.5% to 3% of each loan’s principal amount, paid from the business account itself. The Department of Commerce can set an annual cap on total management fees an eligible fund manager may collect. This directly affects fund managers managing these accounts, enabling them to cover administrative costs related to lending activities while maintaining oversight of fee levels.