Bill Text: MI HB5998 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Economic development: Michigan strategic fund; Michigan small business relief funding program; codify. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding ch. 8f.
Spectrum: Partisan Bill (Democrat 29-0)
Status: (Introduced - Dead) 2020-08-06 - Bill Electronically Reproduced 07/23/2020 [HB5998 Detail]
Download: Michigan-2019-HB5998-Introduced.html
HOUSE BILL NO. 5998
July 23, 2020, Introduced by Reps. Manoogian,
Koleszar, Anthony, Witwer, Pagan, Rabhi, Lasinski, Warren, Clemente,
Liberati, Hammoud, Camilleri, Shannon, Pohutsky, Hope, Kennedy, Chirkun,
Stone, Sneller, Hoadley, Bolden, Guerra, Brixie, Sabo, Gay-Dagnogo, Hood,
Garza, Tate and Hertel and referred to the Committee on Commerce and
Tourism.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
(MCL 125.2001 to 125.2094) by adding chapter 8f.
the people of the state of michigan enact:
CHAPTER 8F
Sec. 90t. As used in this chapter:
(a)
"Eligible business" means a business that meets all of the following:
(i) Is in an industry or business
affected by an emergency in this state or is a business that provides goods or
services to an industry or businesses affected by an emergency in this state.
(ii) Needs working capital to support
payroll expenses, rent, mortgage payments, utility expenses, or other similar
expenses that occur in the ordinary course of business.
(iii) Demonstrates an income loss as a result of an
emergency as determined by the fund.
(b)
"Emergency" means a state of emergency or a state of disaster
declared by the governor.
(c)
"Local economic development organization" means a participating
economic development corporation formed under the economic development
corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, who are part of a
contractual interlocal agreement with the fund.
(d)
"Small business relief grant" or "grant" means a small
business relief grant made to an eligible business under this chapter.
(e)
"Small business relief loan" or "loan" means a small
business relief loan made to an eligible business under this chapter.
(f)
"Small business relief program" or "program" means the
small business relief program operated by the fund under this chapter.
(g)
"State of disaster" means that term as described in section 2 of the
emergency management act,1976 PA 390, MCL 30.402.
(h)
"state of emergency" means that term as described in section 2 of the
emergency management act, 1976 PA 390, MCL 30.402.
Sec. 90u. (1) The fund shall create
and operate the small business relief program to provide small business relief
grants and small business relief loans to eligible businesses in this state.
The fund, in consultation with local economic development organizations, will
provide grants and loans to eligible businesses that have realized a
significant financial hardship as a result of an emergency.
(2)
The program shall provide for all of the following:
(a)
Grants must only be made available to eligible businesses that have 50 or fewer
employees as determined by the fund.
(b)
Grants cannot exceed $10,000.00.
(c)
Loans must only be made to eligible businesses that have 100 or fewer employees
and that are unable to access credit through alternative sources, as determined
by the fund.
(d)
Loans must be made in amounts of not less than $50,000.00 and not more than
$200,000.00.
(e)
Loans shall be amortized over 120 months with interest payment only for the
first 60 months. Interest rate shall be .25% per annum.
(f)
Grants and loans may only be used for working capital to support payroll
expenses, rent, mortgage payments, utility expenses, or similar expenses that
occur in the ordinary course of business.
Sec. 90v. (1) The fund, in conjunction with local economic development organizations, must develop and post on the fund's website the application, program operation, award, and reporting criteria for the program.
(2) The fund shall report to the governor, each house of the legislature, and the house and senate fiscal agencies every calendar quarter on the amount of grants and loans made in the previous quarter and the name of the recipient of each grant and loan made under the program.
