HOUSE FILE 2063

BY  MURPHY, HUNTER, ISENHART, SWAIM, KEARNS, GASKILL, H. MILLER, COHOON, STECKMAN, and R. OLSON

A BILL FOR

An Act relating to small business development by making an appropriation to match a federal grant and including effective and retroactive applicability date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  ECONOMIC DEVELOPMENT AUTHORITY —— SMALL BUSINESS DEVELOPMENT APPROPRIATION.
   1.  There is appropriated from the general fund of the state to the economic development authority for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For matching the federal grant for the state small business credit initiative:
.................................................. $ 13,168,350
   Of the moneys appropriated in this subsection, $8,000,000, or so much thereof as is necessary, shall be used for the Iowa small business loan program.
   2.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year beginning July 1, 2011, and ending June 30, 2012, shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year beginning July 1, 2012, and ending June 30, 2013.
   3.  The economic development authority shall evaluate the viability of creating a state program to match the federal capital access program.
    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to July 1, 2011.
EXPLANATION
   This bill appropriates funds to the economic development authority to match a federal grant for the state small business credit initiative (SSBCI). The bill appropriates approximately $13.2 million to match the federal grant for the SSBCI. Of the state money appropriated for the SSBCI, the bill provides that $8 million shall be used for the Iowa small business loan program. The bill provides that the moneys appropriated are not subject to reversion and remain available for expenditure for the purposes designated for the succeeding fiscal year. The bill requires the economic development authority to evaluate the viability of creating a state program to match the federal capital access program. The bill is effective upon enactment and applies retroactively to July 1, 2011.