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Virginia Regulatory Town Hall
Agency
Department of Professional and Occupational Regulation
 
Board
Board for Contractors
 
chapter
Board for Contractors Regulations [18 VAC 50 ‑ 22]
Action Amendments to Improve Application Integrity
Stage Proposed
Comment Period Ended on 8/26/2016
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8/11/16  3:22 pm
Commenter: Don't Build Until, LLC

Requirement for credit report
 

The proposed requirement for a firm to submit a credit report prior to obtaining a contractor license will be overly burdensome to small, startup businesses. A large out-of-state company, coming into Virignia, with an established track record will have no problem.

But what about someone starting out with a pickup truck and a tool belt? Perhaps they, personally, have a great FICO score, but the startup business entity is unknown. Without a track record, what are they supposed to do? How much does it cost to buy a good credit listing?

The pendulum has swung too much the other way - whereas the "cross my heart" application was taken advantage of, now the process to obtain a contractor license has become so difficult, that it may encourage unlicensed activity - just the opposite of what is intended.

CommentID: 50780