North Carolina SB 651: The Hustle Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 651

Short Title: The Hustle Act. (Public)
Sponsors: Senators Garrett, Batch, and Salvador (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S651-v-1*
A BILL TO BE ENTITLED 1
AN ACT HELPING UNDERSERVED SMALL-BUSINESS TRIUMPH THROUGH 2
LENDING ENHANCEMENT. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Article 10 of Chapter 143B of the General Statutes is amended by 5
adding a new Part to read: 6
"Part 20A. 7
"Small Business Capital Access. 8
"§ 143B-271.113. Small Business Capital Access Act. 9
(a) Title. – This Part shall be known and may be cited as the "North Carolina Small 10
Business Capital Access Act." 11
(b) Findings. – The General Assembly finds as follows: 12
(1) Small businesses and MWBEs are vital to North Carolina's economy, creating 13
jobs and driving innovation throughout the State. 14
(2) Despite their importance, these businesses face persistent barriers to accessing 15
capital necessary for startup, operation, and growth. 16
(3) Existing capital access programs have gaps that leave many qualified 17
businesses unable to secure necessary financing. 18
(4) Targeted interventions have proven successful in other states and countries in 19
addressing these capital access disparities. 20
(5) North Carolina has an opportunity to strengthen its economy by implementing 21
a coordinated strategy to expand capital access for small businesses and 22
MWBEs. 23
(c) Purpose. – The purpose of this Act is to establish a comprehensive framework to 24
expand access to capital for small businesses and Minority and Women-Owned Business 25
Enterprises throughout North Carolina through coordinated loan guarantees, direct investment, 26
support for community lenders, technical assistance, and incentives for private investment. 27
(d) Definitions. – The following definitions apply in this Act: 28
(1) Board. – The Small Business Capital Access Oversight Board established by 29
this Act. 30
(2) CDFI. – A Community Development Financial Institution certified by the 31
U.S. Department of the Treasury. 32
(3) Department. – The North Carolina Department of Commerce. 33
(4) Fund. – The North Carolina Small Business Capital Access Fund. 34

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 651-First Edition
(5) Growth-stage business. – A business that has established a viable product or 1
service and is seeking capital to expand operations, market reach, or product 2
offerings. 3
(6) MWBE. – A minority or women-owned business enterprise certified by the 4
North Carolina Office for Historically Underutilized Businesses. 5
(7) Office. – The Office of Small Business Capital Access. 6
(8) Program. – The North Carolina Small Business Capital Access Program. 7
(9) Small business. – A business that employs fewer than 500 full-time 8
employees. 9
(10) Technical assistance. – Professional guidance provided to business owners in 10
areas including but not limited to business planning, financial management, 11
marketing, operations, technology, and accessing capital. 12
(11) Underserved community. – A census tract that is designated as a low-income 13
community according to the most recent data from the U.S. Census Bureau or 14
is located in a rural area as defined by the North Carolina Rural Center. 15
(e) Office established, duties. – There is established within the Department of Commerce 16
the Office of Small Business Capital Access. The Office shall be headed by a Director appointed 17
by the Secretary of Commerce, who shall have substantial experience in small business financing, 18
economic development, or MWBE support. The Office shall fulfil the following duties: 19
(1) Administer all components of the North Carolina Small Business Capital 20
Access Program. 21
(2) Develop program guidelines, application procedures, and evaluation metrics. 22
(3) Coordinate with other state agencies providing services to small businesses 23
and MWBEs. 24
(4) Conduct outreach to ensure participation by businesses in all regions of the 25
State. 26
(5) Collect and analyze data on program outcomes. 27
(6) Submit annual reports to the General Assembly and the Governor. 28
(7) Seek additional funding through federal grants, philanthropic sources, and 29
other avenues. 30
(f) Board established, duties. – There is established the Small Business Capital Access 31
Oversight Board to provide strategic guidance for the Program by (i) reviewing and approving 32
program guidelines developed by the Office; (ii) monitoring program performance and outcomes; 33
(iii)) advising on strategic priorities and capital deployment strategies; (iv) ensuring the Program 34
reaches underserved communities and populations; (v) meeting at least quarterly; and (vi) 35
submitting annual recommendations to the Governor and General Assembly. Board members 36
shall serve four-year terms; provided that, initial appointments, as determined by the B