Bill Text: FL S0398 | 2016 | Regular Session | Introduced
Bill Title: Economic Incentives for Small Technology Companies
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2016-03-11 - Died in Commerce and Tourism [S0398 Detail]
Download: Florida-2016-S0398-Introduced.html
Florida Senate - 2016 SB 398 By Senator Soto 14-00541-16 2016398__ 1 A bill to be entitled 2 An act relating to economic incentives for small 3 technology companies; amending s. 288.9931, F.S.; 4 revising the legislative findings and intent to 5 include small technology companies; amending s. 6 288.9932, F.S.; defining the term “small technology 7 company”; amending s. 288.9935, F.S.; authorizing the 8 provision of loans to small technology companies 9 through the Microfinance Guarantee Program; defining 10 the term “applicant”; conforming provisions to changes 11 made by the act; providing an appropriation; providing 12 an effective date. 13 14 Be It Enacted by the Legislature of the State of Florida: 15 16 Section 1. Section 288.9931, Florida Statutes, is amended 17 to read: 18 288.9931 Legislative findings and intent.—The Legislature 19 finds that the ability of entrepreneurs,andsmall businesses, 20 and small technology companies to access capital is vital to the 21 overall health and growth of this state’s economy; however, 22 access to capital is limited by the lack of available credit for 23 such entrepreneurs,andsmall businesses, and small technology 24 companies in this state. The Legislature further finds that 25 entrepreneurs,andsmall businesses, and small technology 26 companies could be assisted through the creation of a program 27 that will provide an avenuefor entrepreneurs and small28businesses in this stateto access credit. Additionally, the 29 Legislature finds that business management training, business 30 development training, and technical assistance are necessary to 31 ensure that entrepreneurs,andsmall businesses, and small 32 technology companies that receive credit develop the skills 33 necessary to grow and achieve long-term financial stability. The 34 Legislature intends to expand job opportunities for this state’s 35 workforce by expanding access to credit to entrepreneurs,and36 small businesses, and small technology companies. Furthermore, 37 the Legislature intends to avoid duplicating existing programs 38 and to coordinate, assist, augment, and improve access to those 39 programs for entrepreneurs,andsmall businesses, and small 40 technology companies in this state. 41 Section 2. Subsection (6) is added to section 288.9932, 42 Florida Statutes, to read: 43 288.9932 Definitions.—As used in this part, the term: 44 (6) “Small technology company” means a business that: 45 (a) Is authorized to do business in this state and has its 46 principal place of business located in this state. 47 (b) Generated annual gross revenues of $250,000 or less per 48 year for the preceding 2 years. 49 (c) Has a net worth of less than $1 million. 50 (d) Primarily engages in business activities in the areas 51 of solar energy, biotechnology, biofuel, or commercial space 52 flight, or in the production of simulation software or sensors. 53 Section 3. Subsections (1), (2), (3), (7), and (8) of 54 section 288.9935, Florida Statutes, are amended to read: 55 288.9935 Microfinance Guarantee Program.— 56 (1) The Microfinance Guarantee Program is established in 57 the department. The purpose of the program is to stimulate 58 access to credit for entrepreneurs,andsmall businesses, and 59 small technology companies in this state by providing targeted 60 guarantees to loans made to such entrepreneurs,andsmall 61 businesses, and small technology companies. Funds appropriated 62 to the program must be reinvested and maintained as a long-term 63 and stable source of funding for the program. 64 (2) As used in this section, the term: 65 (a) “Applicant” has the same meaning as provided in s. 66 288.9932 and also includes a small technology company. 67 (b) “Lender” means a financial institution as defined in s. 68 655.005. 69 (3) The department must enter into a contract with 70 Enterprise Florida, Inc., to administer the Microfinance 71 Guarantee Program. In administering the program, Enterprise 72 Florida, Inc., must, at a minimum: 73 (a) Establish lender and borrower eligibility requirements 74 in addition to those provided in this section.;75 (b) Determine a reasonable leverage ratio of loan amounts 76 guaranteed to state funds; however, the leverage ratio may not 77 exceed 3 to 1.;78 (c) Establish reasonable fees and interest.;79 (d) Promote the program to financial institutions that 80 provide loans to entrepreneurs,andsmall businesses, and small 81 technology companies in order to maximize the number of lenders 82 throughout the state which participate in the program.;83 (e) Enter into a memorandum of understanding with the 84 network to promote the program to underserved entrepreneurs,and85 small businesses, and small technology companies.;86 (f) Establish limits on the total amount of loan guarantees 87 a single lender can receive.;88 (g) Establish an average loan guarantee amount for loans 89 guaranteed under this section.;90 (h) Establish a risk-sharing strategy to be employed in the 91 event of a loan failure.; and92 (i) Establish financial performance measures and objectives 93 for the program in order to maximize the state funds. 94 (7) To be eligible to receive a loan guarantee under the 95 Microfinance Guarantee Program, a borrower must, at a minimum: 96 (a) Be an entrepreneur or small business located in this 97 state which employs;98(b) Employ25 or fewer people and generates;99(c) Generateaverage annual gross revenues of $1.5 million 100 or less per year for the last 2 years or be a small technology 101 company.; and102 (b)(d)Meet any additional requirements established by 103 Enterprise Florida, Inc. 104 (8) By October 1 of each year, Enterprise Florida, Inc., 105 shall submit a complete and detailed annual report to the 106 department for inclusion in the department’s report required 107 under s. 20.60(10). The report must, at a minimum, provide: 108 (a) A comprehensive description of the program, including 109 an evaluation of its application and guarantee activities, 110 recommendations for change, and identification of any other 111 state programs that overlap with the program.;112 (b) An assessment of the current availability of and access 113 to credit for entrepreneurs,andsmall businesses, and small 114 technology companies in this state.;115 (c) A summary of the financial and employment results of 116 the entrepreneurs,andsmall businesses, and small technology 117 companies receiving loan guarantees, including the number of 118 full-time equivalent jobs created as a result of the guaranteed 119 loans and the amount of wages paid to employees in the newly 120 created jobs.;121 (d) Industry data about the borrowers, including the six 122 digit North American Industry Classification System (NAICS) 123 code.;124 (e) The name and location of lenders that receive loan 125 guarantees.;126 (f) The amount of state funds received by Enterprise 127 Florida, Inc.;128 (g) The number of loan guarantee applications received.;129 (h) The number, duration, location, and amount of 130 guarantees made.;131 (i) The number and amount of guaranteed loans outstanding, 132 if any.;133 (j) The number and amount of guaranteed loans with payments 134 overdue, if any.;135 (k) The number and amount of guaranteed loans in default, 136 if any.;137 (l) The repayment history of the guaranteed loans made.;138and139 (m) An evaluation of the program’s ability to meet the 140 financial performance measures and objectives specified in 141 subsection (3). 142 Section 4. For the 2016-2017 fiscal year, the sum of $50 143 million in nonrecurring funds from the General Revenue Fund is 144 appropriated to the Department of Economic Opportunity, to be 145 used exclusively for the purpose of guaranteeing loans for small 146 technology companies under s. 288.9935, Florida Statutes. 147 Section 5. This act shall take effect July 1, 2016.