Bill Text: FL S1090 | 2015 | Regular Session | Introduced
Bill Title: Economic Incentives for Small Technology Companies
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2015-05-01 - Died in Commerce and Tourism [S1090 Detail]
Download: Florida-2015-S1090-Introduced.html
Florida Senate - 2015 SB 1090
By Senator Soto
14-00246A-15 20151090__
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 conforming provisions to changes made by the act;
5 amending s. 288.9932, F.S.; defining the term “small
6 technology company”; amending s. 288.9935, F.S.;
7 authorizing the provision of loans to small technology
8 companies through the Microfinance Guarantee Program;
9 defining the term “applicant”; conforming provisions
10 to changes made by the act; providing an
11 appropriation; providing an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Section 288.9931, Florida Statutes, is amended
16 to read:
17 288.9931 Legislative findings and intent.—The Legislature
18 finds that the ability of entrepreneurs, and small businesses,
19 and small technology companies to access capital is vital to the
20 overall health and growth of this state’s economy; however,
21 access to capital is limited by the lack of available credit for
22 such entrepreneurs and small businesses in this state. The
23 Legislature further finds that entrepreneurs, and small
24 businesses, and small technology companies could be assisted
25 through the creation of a program that will provide an avenue
26 for entrepreneurs and small businesses in this state to access
27 credit. Additionally, the Legislature finds that business
28 management training, business development training, and
29 technical assistance are necessary to ensure that entrepreneurs,
30 and small businesses, and small technology companies that
31 receive credit develop the skills necessary to grow and achieve
32 long-term financial stability. The Legislature intends to expand
33 job opportunities for this state’s workforce by expanding access
34 to credit to entrepreneurs, and small businesses, and small
35 technology companies. Furthermore, the Legislature intends to
36 avoid duplicating existing programs and to coordinate, assist,
37 augment, and improve access to those programs for entrepreneurs,
38 and small businesses, and small technology companies in this
39 state.
40 Section 2. Subsection (6) is added to section 288.9932,
41 Florida Statutes, to read:
42 288.9932 Definitions.—As used in this part, the term:
43 (6) “Small technology company” means a business that:
44 (a) Is authorized to do business in this state and has its
45 principal place of business located in this state.
46 (b) Generated annual gross revenues of $250,000 or less per
47 year for the preceding 2 years.
48 (c) Has a net worth less than $1 million.
49 (d) Primarily engages in business activities in the sectors
50 of solar energy, biotechnology, biofuel, commercial space
51 flight, or in the production of simulation software or sensors.
52 Section 3. Subsections (1), (2), (3), (7), and (8) of
53 section 288.9935, Florida Statutes, are amended to read:
54 288.9935 Microfinance Guarantee Program.—
55 (1) The Microfinance Guarantee Program is established in
56 the department. The purpose of the program is to stimulate
57 access to credit for entrepreneurs, and small businesses, and
58 small technology companies in this state by providing targeted
59 guarantees to loans made to such entrepreneurs and small
60 businesses. Funds appropriated to the program must be reinvested
61 and maintained as a long-term and stable source of funding for
62 the program.
63 (2) As used in this section, the term:
64 (a) “Applicant” has the meaning provided in s. 288.9932,
65 and also includes a small technology company.
66 (b) “Lender” means a financial institution as defined in s.
67 655.005.
68 (3) The department must enter into a contract with
69 Enterprise Florida, Inc., to administer the Microfinance
70 Guarantee Program. In administering the program, Enterprise
71 Florida, Inc., must, at a minimum:
72 (a) Establish lender and borrower eligibility requirements
73 in addition to those provided in this section.;
74 (b) Determine a reasonable leverage ratio of loan amounts
75 guaranteed to state funds; however, the leverage ratio may not
76 exceed 3 to 1.;
77 (c) Establish reasonable fees and interest.;
78 (d) Promote the program to financial institutions that
79 provide loans to entrepreneurs, and small businesses, and small
80 technology companies in order to maximize the number of lenders
81 throughout the state which participate in the program.;
82 (e) Enter into a memorandum of understanding with the
83 network to promote the program to underserved entrepreneurs, and
84 small businesses, and small technology companies.;
85 (f) Establish limits on the total amount of loan guarantees
86 a single lender can receive.;
87 (g) Establish an average loan guarantee amount for loans
88 guaranteed under this section.;
89 (h) Establish a risk-sharing strategy to be employed in the
90 event of a loan failure.; and
91 (i) Establish financial performance measures and objectives
92 for the program in order to maximize the state funds.
93 (7) To be eligible to receive a loan guarantee under the
94 Microfinance Guarantee Program, a borrower must, at a minimum:
95 (a) Be an entrepreneur or small business located in this
96 state that employs;
97 (b) Employ 25 or fewer people; and generates
98 (c) Generate average annual gross revenues of $1.5 million
99 or less per year for the last 2 years or be a small technology
100 company.; and
101 (b)(d) Meet any additional requirements established by
102 Enterprise Florida, Inc.
103 (8) By October 1 of each year, Enterprise Florida, Inc.,
104 shall submit a complete and detailed annual report to the
105 department for inclusion in the department’s report required
106 under s. 20.60(10). The report must, at a minimum, provide:
107 (a) A comprehensive description of the program, including
108 an evaluation of its application and guarantee activities,
109 recommendations for change, and identification of any other
110 state programs that overlap with the program.;
111 (b) An assessment of the current availability of and access
112 to credit for entrepreneurs, and small businesses, and small
113 technology companies in this state.;
114 (c) A summary of the financial and employment results of
115 the entrepreneurs, and small businesses, and small technology
116 companies receiving loan guarantees, including the number of
117 full-time equivalent jobs created as a result of the guaranteed
118 loans and the amount of wages paid to employees in the newly
119 created jobs.;
120 (d) Industry data about the borrowers, including the six
121 digit North American Industry Classification System (NAICS)
122 code.;
123 (e) The name and location of lenders that receive loan
124 guarantees.;
125 (f) The amount of state funds received by Enterprise
126 Florida, Inc.;
127 (g) The number of loan guarantee applications received.;
128 (h) The number, duration, location, and amount of
129 guarantees made.;
130 (i) The number and amount of guaranteed loans outstanding,
131 if any.;
132 (j) The number and amount of guaranteed loans with payments
133 overdue, if any.;
134 (k) The number and amount of guaranteed loans in default,
135 if any.;
136 (l) The repayment history of the guaranteed loans made.;
137 and
138 (m) An evaluation of the program’s ability to meet the
139 financial performance measures and objectives specified in
140 subsection (3).
141 Section 4. For the 2015-2016 fiscal year, the sum of $50
142 million in nonrecurring funds from the General Revenue Fund is
143 appropriated to the Department of Economic Opportunity to be
144 used exclusively for the purpose of guaranteeing loans for small
145 technology companies under s. 288.9935, Florida Statutes.
146 Section 5. This act shall take effect July 1, 2015.
