Bill Text: FL H1301 | 2011 | Regular Session | Introduced

Bill Title: Economic Development

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H1301 Detail]

Download: Florida-2011-H1301-Introduced.html
HB 1301

A bill to be entitled
2An act relating to economic development; creating s.
3288.9619, F.S.; creating the Business Loan Guarantee
4Program; defining terms; requiring the Office of Tourism,
5Trade, and Economic Development to create a business loan
6guarantee fund to provide loans to certain businesses;
7providing for use of certain funds for the program;
8providing maximum terms and amounts of loan guarantees;
9providing procedures for the approval of loan guarantee
10applications; requiring application fees; providing
11procedures for the payment of loan guarantees to cover
12investment losses; prohibiting disbursement of moneys for
13investment losses under certain circumstances; providing
14for use of loan repayments, interest earnings, and
15application fees; authorizing partnerships with financial
16institutions under certain circumstances; requiring the
17office to establish guidelines and performance measures
18for the program and criteria for the evaluation of funding
19applications; requiring the office to submit annual
20reports to the Governor and Legislature; providing for
21future repeal of the program; amending 288.1081, F.S.;
22revising provisions for the deposit of loan repayments
23from the Economic Gardening Business Loan Pilot Program;
24providing for use of the funds; repealing s. 288.9618,
25F.S., relating to programs for the development of
26microenterprises; providing an effective date.
28Be It Enacted by the Legislature of the State of Florida:
30     Section 1.  Section 288.9619, Florida Statutes, is created
31to read:
32     288.9619  Business Loan Guarantee Program.-
33     (1)  As used in this section, the term:
34     (a)  "Business" means any business incorporated under the
35laws of the state.
36     (b)  "Office" means the Office of Tourism, Trade, and
37Economic Development.
38     (2)  There is created within the office the Business Loan
39Guarantee Program. The office shall create a business loan
40guarantee fund in the state. The office may use funds deposited
41in the Economic Development Trust Fund from the Economic
42Gardening Business Loan Pilot Program under s. 288.1081(5)(e)
43for capitalizing the business loan guarantee fund. Where
44feasible, the office shall cooperate with other organizations
45active in the study and support of business loan assistance.
46     (3)(a)  The business loan guarantee fund may provide loan
47guarantees to offset a Florida-based mezzanine fund's portion of
48risk that prevents the mezzanine fund from making an investment,
49either debt or equity, in a business that:
50     1.  Is a privately held, second-stage business;
51     2.  Has revenues of at least $5 million but not more than
52$75 million;
53     3.  Has earnings of at least $1 million before interest,
54taxes, depreciation, and amortization;
55     4.  Has a total debt-to-earnings ratio, before interest,
56taxes, depreciation, and amortization, of less than 3.0;
57     5.  Has proven and committed management teams;
58     6.  Has a competitive advantage in market segment or
59defensible niche position; and
60     7.  Has a sound historical financial performance.
61     (b)  Loan guarantees may be made:
62     1.  For terms of up to 36 months; and
63     2.  In amounts of up to 70 percent of a loan, not to exceed
65     (4)  The office shall review and must approve or deny a
66Florida-based mezzanine fund's loan guarantee application within
6730 days after receipt. The office shall impose upon each
68Florida-based mezzanine fund seeking a loan guarantee an
69application fee of 0.5 percent of the proposed loan guarantee.
70The office shall use the application fees to pay the
71administrative expenses of the program. If a Florida-based
72mezzanine fund experiences a loss on an investment for which a
73loan guarantee is provided under this section, the Florida-based
74mezzanine fund must submit to the office audited financial
75statements that demonstrate the investment's actual tax loss
76experienced by the Florida-based mezzanine fund. The business
77loan guarantee fund may not disburse moneys for any losses
78experienced from a loan guarantee which exceed the moneys on
79deposit in the business loan guarantee fund. Any loan
80repayments, interest earnings, or unused application fees must
81be used by the office to capitalize the business loan guarantee
82fund for use as additional loan guarantees.
83     (5)  The office may partner with a financial institution if
84the financial institution agrees to place a meaningful amount of
85its own capital resources at risk in a loan guarantee that is
86part of a loan guarantee made by the office.
87     (6)  The office shall establish guidelines for
88administering the program and shall establish criteria for the
89competitive evaluation of applications for funding. The office
90shall establish performance measures for the program before
91providing grant moneys to any entity and shall report such
92measures and program outcomes annually to the Governor, the
93President of the Senate, and the Speaker of the House of
94Representatives. Performance measures shall include, but are not
95limited to, data on loan repayments and the status of the
96business receiving the loan during the loan term and for 2 years
97after repayment of the loan.
98     (7)  This section is repealed July 1, 2017, unless reviewed
99and reenacted by the Legislature before that date.
100     Section 2.  Paragraph (e) of subsection (5) of section
101288.1081, Florida Statutes, is amended to read:
102     288.1081  Economic Gardening Business Loan Pilot Program.-
103     (5)
104     (e)  A loan administrator, after collecting the servicing
105fee in accordance with paragraph (d), shall remit the borrower's
106collected interest, principal payments, and charges for late
107payments to the office on a quarterly basis. If the borrower
108defaults on the loan, the loan administrator shall initiate
109collection efforts to seek repayment of the loan. The loan
110administrator, upon collecting payments for a defaulted loan,
111shall remit the payments to the office but, to the extent
112authorized in the grant agreement, may deduct the costs of the
113administrator's collection efforts. The office shall deposit all
114funds received under this paragraph into the Economic
115Development Trust Fund for purposes of in the Business Loan
116Guarantee Program under s. 288.9619 General Revenue Fund.
117     Section 3.  Section 288.9618, Florida Statutes, is
119     Section 4.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.