Bill Text: IA SF161 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act relating to economic development by making changes to the administration of the save our small businesses fund and program and including effective date provisions. (See SF 301.)
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [SF161 Detail]
Download: Iowa-2011-SF161-Introduced.html
Senate
File
161
-
Introduced
SENATE
FILE
161
BY
SODDERS
,
DOTZLER
,
HATCH
,
BOWMAN
,
RIELLY
,
HORN
,
KIBBIE
,
GRONSTAL
,
DANDEKAR
,
WILHELM
,
SCHOENJAHN
,
BLACK
,
and
COURTNEY
A
BILL
FOR
An
Act
relating
to
economic
development
by
making
changes
to
1
the
administration
of
the
save
our
small
businesses
fund
and
2
program
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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S.F.
161
Section
1.
Section
15.301,
subsection
1,
paragraph
c,
Code
1
2011,
is
amended
to
read
as
follows:
2
c.
(1)
If,
on
March
31,
2011
2013
,
there
are
unobligated
3
moneys
in
the
fund,
such
unobligated
moneys
shall
revert
to
the
4
general
fund
of
the
state.
5
(2)
For
each
quarter,
beginning
with
the
first
quarter
after
6
the
reversion
of
moneys
pursuant
to
subparagraph
(1)
and
ending
7
with
the
last
quarter
prior
to
the
reversion
of
moneys
pursuant
8
to
subparagraph
(3),
the
department
shall,
on
the
last
day
of
9
the
quarter,
transfer
to
the
general
fund
of
the
state
the
10
balance
of
unencumbered
moneys
in
the
fund.
11
(3)
On
March
31,
2016
2018
,
all
moneys
in
the
fund
shall
12
revert
to
the
general
fund
of
the
state.
13
Sec.
2.
Section
15.301,
subsection
2,
paragraph
a,
Code
14
2011,
is
amended
to
read
as
follows:
15
a.
The
department
shall
establish
and
administer
a
program
16
for
purposes
of
providing
financial
assistance
to
eligible
17
small
businesses.
For
purposes
of
this
section
,
“financial
18
assistance”
means
loans
at
an
interest
rate
not
to
exceed
three
19
and
nine-tenths
percent
per
annum
and
“eligible
small
business”
20
means
a
small
business
meeting
the
requirements
of
subsection
21
3
.
In
administering
the
program,
the
department
may
negotiate
22
the
terms
on
which
the
financial
assistance
is
provided
and
may
23
include
such
terms
in
the
loan
agreements
as
are
best
designed
24
to
effectuate
the
program’s
goals.
Such
terms
may
provide
for
25
up
to
six
months
of
interest-free
financing.
26
Sec.
3.
Section
15.301,
subsection
2,
paragraph
e,
Code
27
2011,
is
amended
to
read
as
follows:
28
e.
The
department,
under
the
terms
of
an
agreement
with
29
the
an
organization
designated
pursuant
to
paragraph
“b”
,
30
shall
begin
to
provide
financial
assistance
from
the
fund
not
31
later
than
August
1,
2010,
and
shall
to
the
extent
practicable
32
obligate
all
available
moneys
in
the
fund
prior
to
March
31,
33
2011
2013
.
34
Sec.
4.
Section
15.301,
subsection
3,
paragraph
d,
Code
35
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161
2011,
is
amended
to
read
as
follows:
1
d.
The
business
has
a
business
plan
and
has
received
2
assistance
in
the
development
stage
or
the
expansion
stage
from
3
a
one
of
the
following:
4
(1)
A
small
business
development
center
or
from
a
.
5
(2)
A
qualified
public
or
nonprofit
small
business
6
consultant
as
defined
by
the
department.
7
(3)
A
bank,
credit
union,
or
extension
office
deemed
8
capable
of
administering
the
provisions
of
this
section
by
the
9
department.
10
Sec.
5.
Section
15.301,
subsection
5,
paragraph
c,
Code
11
2011,
is
amended
to
read
as
follows:
12
c.
(1)
An
eligible
business
that
receives
financial
13
assistance
under
this
section
shall
not
use
such
financial
14
assistance
for
purposes
of
meeting
payroll
obligations
to
15
employees.
However,
the
department
may
authorize
an
eligible
16
business
to
use
not
more
than
twenty-five
percent
of
the
loan
17
proceeds
for
purposes
of
meeting
certain
eligible
operational
18
expenses.
19
(2)
The
department
shall
by
rule
determine
what
expenses
20
qualify
as
eligible
operational
expenses.
In
making
such
a
21
determination,
the
department
shall
consider
factors
such
as
22
the
availability
and
sufficiency
of
collateral,
operational
23
cash
flow,
credit
history,
and
adequacy
of
insurance
coverage.
24
Sec.
6.
2010
Iowa
Acts,
chapter
1184,
section
43,
is
amended
25
to
read
as
follows:
26
SEC.
43.
SAVE
OUR
SMALL
BUSINESSES
FUND
APPROPRIATION.
27
There
is
appropriated
from
the
school
infrastructure
fund
28
created
in
section
12.82
to
the
department
of
economic
29
development
for
deposit
in
the
save
our
small
businesses
fund
30
for
the
fiscal
year
beginning
July
1,
2010,
and
ending
June
30,
31
2011,
the
following
amount,
or
so
much
thereof
as
is
necessary,
32
to
be
used
for
the
purposes
designated:
33
For
purposes
of
providing
financial
assistance
under
the
34
save
our
small
businesses
program
under
section
15.301
:
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$
5,000,000
1
Of
the
moneys
appropriated
pursuant
to
this
section,
the
2
department
may
allocate
an
amount
not
to
exceed
two
percent
of
3
the
moneys
appropriated
for
purposes
of
retaining
the
services
4
of
an
organization
designated
pursuant
to
section
15.301,
5
subsection
2
,
paragraph
“b”.
6
Of
the
moneys
appropriated
pursuant
to
this
section,
the
7
department
may
allocate
not
more
than
$25,000
for
purposes
of
8
marketing
the
save
our
small
businesses
program.
9
Notwithstanding
section
8.33,
moneys
appropriated
in
this
10
section
that
remain
unencumbered
or
unobligated
at
the
close
of
11
the
fiscal
year
shall
not
revert
but
shall
remain
available
for
12
expenditure
for
the
purposes
designated.
13
Sec.
7.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
14
immediate
importance,
takes
effect
upon
enactment.
15
EXPLANATION
16
This
bill
relates
to
the
administration
of
the
save
our
17
small
businesses
fund
and
program
by
the
department
of
economic
18
development.
19
The
bill
extends
by
two
years
the
time
period
during
which
20
the
department
must
obligate
the
funds
available
under
the
21
program,
allows
the
department
to
negotiate
the
terms
on
which
22
financial
assistance
is
provided,
directs
the
department
to
23
accept
business
plans
from
banks,
credit
unions,
and
extension
24
offices,
allows
the
department
to
authorize
up
to
25
percent
of
25
the
loan
proceeds
for
certain
operational
expenses,
and
allows
26
the
department
to
use
up
to
$25,000
of
the
moneys
in
the
fund
27
for
purposes
of
marketing
the
program.
28
Since
the
program
has
a
statutorily
defined
schedule
of
29
reversions
to
the
general
fund,
the
bill
amends
2010
Iowa
Acts
30
chapter
1184
to
notwithstand
the
reversion
of
programs
moneys
31
to
the
general
fund
at
the
close
of
the
fiscal
year
pursuant
to
32
Code
section
8.33.
33
The
bill
takes
effect
upon
enactment.
34
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