Bill
SB 377
Establishes the BRIDGE Program to fund and grow incubators that assist early-stage, minority-owned and disadvantaged entrepreneurs in the state.
Status
- Introduced: January 17, 2025 (Finance)
- Effective date: July 1, 2025
- Program sunset/termination: June 30, 2032
- Hearing (as provided): 2/13 at 1:00 p.m.
- Sponsor (as in fiscal materials): Senator A. Washington
Purpose / Intent
- Establish a state-administered grant program (the BRIDGE Program) and a dedicated BRIDGE Fund in the Department of Commerce to support the creation and growth of business incubators that serve early‑stage companies — with emphasis on diversity, equity, and support for socially and economically disadvantaged entrepreneurs.
Key provisions
- Program and fund
- Creates the BRIDGE Program in the Department of Commerce and a special, nonlapsing BRIDGE Fund.
- Commerce must hire at least one full‑time coordinator to administer the program.
- Fund may be used for grants to qualified incubators and up to 15% of an annual appropriation for Commerce administrative costs.
- Qualified incubators
- Eligible entities: for‑profit or nonprofit organizations, B Corps, public‑private partnerships, or social enterprises in the State established on or after Jan 1, 2012.
- Must primarily serve state businesses, operate a formal incubator program, have at least one staff mentor dedicated to incubator participants, and be directed by an individual who has completed specified incubator/DEI/entrepreneurship training.
- Grants
- Award amounts: $100,000 to $400,000 per recipient per fiscal year.
- Grants may be used for: (1) planning/long‑term sustainability, (2) capital improvements/real estate/renovations/capital equipment, (3) operating and program expenses.
- Except in the first year, grants may not cover more than 25% of a qualified incubator’s operating expenses.
- Grants are awarded via a competitive application process and generally may renew annually (renewal remains subject to competitive review and compliance with grant terms).
- At least 50% of program money must be awarded to organizations participating in State Minority Business Enterprise (MBE) procurements.
- Department gives preference to incubators that are minority‑managed, located in HUB Zones/qualified opportunity zones/underserved communities, have start‑up experience, or serve companies led by disadvantaged entrepreneurs.
- Reporting and accountability
- Grant recipients must report to Commerce by Sept 1, 2027 and annually thereafter on use of funds and economic impact.
- Commerce must report to the General Assembly by Dec 31, 2027 and annually thereafter with program metrics (number of grants, amounts, recipient names/locations, etc.).
- Funding mechanics and limits
- The bill does not mandate funding levels. It specifies the Governor may include an appropriation of $5.0 million annually to the BRIDGE Fund from FY2027 through FY2032.
- Interest earned on the fund accrues to the State general fund.
Fiscal impact (as provided)
- No immediate mandated appropriation in FY2026.
- If the Governor appropriates $5.0 million annually (FY2027–FY2032), general fund expenditures would increase by $5.0 million each year with corresponding increases in special fund activity for the BRIDGE Fund.
- Local government finances are not materially affected.
- Small businesses/incubators: potential meaningful positive effect through grant support and capacity building.
Who is affected
- Department of Commerce (administration, hiring, reporting)
- Qualified incubators (eligible to apply; must meet staffing/training and program requirements)
- Early-stage businesses and socially/economically disadvantaged entrepreneurs (intended beneficiaries)
- State budget (if Governor appropriates funds)
Implementation / Timeline highlights
- Program effective July 1, 2025; terminates June 30, 2032 unless extended.
- Governor may begin including $5.0M annual appropriation starting FY2027.
- Commerce and grantees begin required annual reporting to state government in 2027.
Compiled from official sources — confirm details with the bill’s official record.
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