In response to the difficulties currently faced by small businesses in meeting capital financing needs, the 1992 General Assembly adopted House Joint Resolution No. 24 (Appendix A), calling for. the creation of the Commission Studying Capital Financing Needs of Small Businesses in Virginia (Commission on Capital Financing). The resolution established a 14-member commission composed of four members of the House of Delegates, appointed by the Speaker of the House; two members of the Senate, appointed by the Senate Committee on Privileges and Elections; the Chairman of the Virginia Small Business Financing Authority or his designee; the Director of the Virginia Department of Economic Development or his designee; and six members at large representing the banking community, the Small Business Development Centers, the Coalition for Jobs and the Environment, the Center on Rural Development, Forward Southwest Virginia, and the planning district commissions, all appointed by the Governor.

The Commission was directed by HJR 24 to examine the following issues:

• The formation of a new, state-funded revolving loan fund to meet the special financing needs of rural small businesses;

• The restructuring of existing regional or statewide financing programs to provide greater access for small businesses;

• Methods of removing structural obstacles, such as taxes and subsidies, to ecologically healthy economic development;

• Special technical assistance needs of small, ecologically healthy business enterprises;

• The effectiveness of support for small business in comparison with the recruitment of larger, externally based employers; and

• Methods for encouraging private sector support for local small business.

Delegate Clarence E. Phillips served as Chairman of the Commission, with Senator William C. Wampler, Jr., acting as Vice Chairman. The Commission met four times. In addition, the Commission was split into two subcommittees for the purpose of holding public hearings. The resolution directed the Commission to submit its findings and recommendations to the 1993 Session of the General Assembly.