The Overview

If you run a business in New Hampshire, a new state law could put more state-backed financing within your reach. New Hampshire businesses seeking state-backed financing could tap a larger pool of support under Senate Bill 525, a new law that raises the maximum amount of state loan guarantees the Business Finance Authority (BFA) can hold at one time from $200 million to $500 million. The BFA is the state agency that helps businesses and nonprofits access financing they might not otherwise qualify for on their own. The law took effect June 19, the same day the governor signed it. ​

What the Law Does

The law raises the BFA's aggregate cap on state guarantees in force from $200 million to $500 million, more than doubling the ceiling, to support economic development. That means the BFA can back a larger total volume of loans at any given time, allowing more businesses to get financing with state support behind it. During the Senate Finance Committee's consideration of the bill, a statement noted that the expanded guarantee authority "does not use any state funding." The guarantee functions as a backstop for lenders, not a direct expenditure from the state treasury. The law took effect immediately upon the governor's signature on June 19.

By the Numbers

New Hampshire has about 1.4 million residents and roughly 556,000 households, according to 2024 American Community Survey five-year estimates covering all ages. The state's median household income was $99,031, and its unemployment rate was 3.3 percent. About 7.2 percent of residents fell below the poverty line.

Legislative Status

Sen. Dan Innis (R-NH) sponsored the bill as lead sponsor. Cosponsors were Sen. Tim Lang (R-NH), Sen. David Watters (D-NH), Sen. Howard Pearl (R-NH), Sen. Kevin Avard (R-NH), and Sen. Daryl Abbas (R-NH).

The bill drew broad support at every stage, clearing both chambers without a single recorded no vote. The Senate Commerce Committee recommended the bill pass unanimously, five to zero, on Feb. 19. The full Senate passed it the same day on a voice vote. The House Commerce and Consumer Affairs Committee then recommended passage unanimously, 15 to zero, on April 29, and the full House passed it on a voice vote May 14.

Gov. Kelly Ayotte (R-NH) signed the bill June 19, making it Chapter 192.

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