Introduced by Rep. Bill Huizenga (R) on June 23, 2005, to establish a government “21st Century Jobs Fund Authority” to distribute business subsidies in one of four ways: A loan guarantee program to indirectly subsidize up to 40 percent of a bank’s loans to small businesses that are a "documented growth opportunity"; a “private equity investment” program to indirectly subsidize firms investing in or acquiring businesses with revenues greater than $10 million; a "qualified venture capital fund" program to indirectly subsidize firms engaged in investing in or acquiring “early stage businesses” that are "not consistently profitable" and lack a proven business model; and direct grants and loan subsidies to public and private entities engaged in the commercialization of “competitive edge technology.” Money for these subsidies would come from a proposal to “securitize” or sell part of the revenue stream from the 1998 tobacco company lawsuit settlement (approximately $280 million per year). Selling the entire revenue stream for 20 years would reportedly generate a lump sum of approximately $4 billion.
Referred to the House Commerce Committee on June 23, 2005.
Reported in the House on June 30, 2005, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
2005 House Bill 5005 (Use tobacco settlement money for various business subsidies ) by admin on January 1, 2001 Introduced in the House on June 23, 2005