FINAL BILL REPORT
2SSB 5652
C 322 L 07
Synopsis as Enacted
Brief Description: Establishing the microenterprise development program.
Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Kauffman, Kastama, Kilmer, Brown, Berkey, Rockefeller, Keiser and Shin).
Senate Committee on Economic Development, Trade & Management
Senate Committee on Ways & Means
House Committee on Community & Economic Development & Trade
House Committee on Appropriations
Background: A microenterprise is commonly understood to be a business with five or fewer
employees, with start-up capital needs of $35,000 or less, and without access to traditional
commercial loans. Most microenterprises are sole-proprietorships, creating employment for the
owner and often other family members. Some grow large enough to employ other members of the
community.
Microenterprise development refers to the process by which entrepreneurs start and grow their
businesses. Microenterprise development programs provide business development services to
individuals currently operating or interested in starting a microenterprise.
Approximately 20 organizations operate microenterprise development programs in Washington;
they offer a variety of microenterprise services and are at various stages of sophistication and
organizational development. Governmental funding for microenterprise development programs
is available in most states.
Summary: The Microenterprise Development Program is established in the Department of
Community, Trade and Economic Development. The department is to provide organizational
support to a statewide microenterprise association and contract with it for the delivery of capacity
building services to microenterprise development organizations as well as grants for technical
assistance and training to microentrepreneurs. The department is also to identify other sources of
funds for microenterprise development and develop criteria for the distribution of grants.
The statewide microenterprise assistance association and microenterprise development
organizations receiving funds must garner matching funds from foundations, financial
institutions, or other sources. The statewide microenterprise assistance association may use no
greater than 10 percent of state funds to cover administrative expenses and must provide the
department with an annual accounting and report on outcomes. The Joint Legislative Audit and
Review Committee is to use outcome data to evaluate the program's effectiveness by January 1,
2012.
Votes on Final Passage:
Senate 49 0
House 83 15 (House amended)
Senate 45 0 (Senate concurred)
Effective: July 22, 2007