WeVote
Log In

Bill

Bill

HB 1372

TO ENCOURAGE THE AWARD OF ECONOMIC DEVELOPMENT FUNDING TO NEW BUSINESSES AND BUSINESSES ESTABLISHED WITHIN THE PREVIOUS FIVE YEARS.

2025 Regular Session Introduced by Kim Hammer and 2 co-sponsors

Arkansas bill to prioritize economic development funding for businesses five years old or newer, though it was withdrawn before passage.

WITHDRAWN BY AUTHOR
0
WeVote Research Nonpartisan
Bill Summary · HB 1372

Legislative bill overview

HB 1372 would have directed Arkansas economic development funding toward newly established businesses and those operating for five years or less. The bill aimed to prioritize public economic development resources toward younger companies rather than established businesses.

Why is this important

Economic development funding is competitive and limited, so prioritization rules directly affect which businesses receive public support and which communities benefit from growth incentives. This approach assumes newer businesses generate greater economic stimulus or job creation per dollar invested compared to established enterprises.

Potential points of contention

  • Definition of "new": Whether five-year threshold captures genuine startups or unfairly disadvantages successful businesses in their growth phase
  • Effectiveness questions: No evidence presented that younger businesses deliver better returns on public investment than established firms that may create more jobs
  • Geographic impact: Risk of concentrating funds in high-growth areas while reducing support for economic development in struggling rural or declining regions
  • Unintended consequences: Could discourage business expansion or relocation if companies fear losing development incentives after five years of operation

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.