Text: HF02294 Text: HF02296 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 15.351 TOURISM-RELATED SMALL
1 2 BUSINESS PROGRAM.
1 3 This part shall be known as the "Tourism-Related Small
1 4 Business Program".
1 5 Sec. 2. NEW SECTION. 15.352 PURPOSE.
1 6 The purpose of this part is to support small businesses
1 7 which are integrally linked to a tourism attraction either
1 8 geographically or thematically.
1 9 Sec. 3. NEW SECTION. 15.353 PROGRAM.
1 10 The department shall establish a program to effectuate the
1 11 purpose of this part by providing financial assistance in the
1 12 form of low-interest loans to tourism-related small
1 13 businesses. Loans shall be provided within the following
1 14 limitations:
1 15 1. Loans shall be to eligible small businesses only.
1 16 2. Loans shall be for start-up or expansion expenses or
1 17 gap financing.
1 18 3. Loans shall not be larger than twenty-five thousand
1 19 dollars to any single business.
1 20 4. The repayment period shall not exceed five years.
1 21 5. Interest on a loan shall be two percent.
1 22 Sec. 4. NEW SECTION. 15.354 ELIGIBLE SMALL BUSINESS.
1 23 To be eligible to receive a loan under this program, a
1 24 small business shall meet all of the following requirements:
1 25 1. The small business is or will be located in or near a
1 26 city of five thousand in population or less.
1 27 2. The small business is or will be a for-profit business
1 28 integrally linked to a tourism attraction either by virtue of
1 29 the location of the small business in relation to the tourism
1 30 attraction or by virtue of the nature of the small business.
1 31 Examples of businesses which may be integrally linked to
1 32 tourism are bed and breakfast establishments, small businesses
1 33 producing souvenir, craft, or art items related to the tourism
1 34 attraction, small businesses providing transportation services
1 35 related to the tourism attraction, and retail or commercial
2 1 establishments such as recreational equipment rental
2 2 businesses. The small business shall demonstrate that at
2 3 least half its revenue is or will be derived from persons in
2 4 the area due to the existence of the tourism attraction.
2 5 3. The small business can demonstrate a financial need for
2 6 the funds. Financial need may be shown through statements
2 7 from local financial institutions that the small business
2 8 cannot obtain all the financing it needs from the financial
2 9 institutions under the usual lending standards of the
2 10 institutions, or through financial records or other means.
2 11 Sec. 5. NEW SECTION. 15.355 RATING FACTORS AND APPROVAL.
2 12 In determining whether to make a program loan to an
2 13 eligible small business, the department shall also consider
2 14 other factors, including the following:
2 15 1. Whether a local or regional tourism plan has been
2 16 adopted for the area in which the small business is or will be
2 17 located. This may include information developed as part of
2 18 the community economic preparedness program.
2 19 2. The extent of local involvement in promoting or
2 20 assisting the small business.
2 21 3. The coordination between the community, the small
2 22 business, and the operators of the tourism attraction, if any.
2 23 A small business which receives a program loan shall enter
2 24 into an agreement with the department specifying the terms and
2 25 conditions of the loan, including any limitation on the use of
2 26 the funds.
2 27 A small business which is denied a program loan shall be
2 28 notified in writing of the reasons for the denial. A small
2 29 business which is denied a program loan may reapply for a
2 30 program loan. The application shall address the reasons for
2 31 the denial of the previous application.
2 32 Sec. 6. APPROPRIATION. There is appropriated from the
2 33 general fund of the state to the department of economic
2 34 development for the fiscal year beginning July 1, 1996, and
2 35 ending June 30, 1997, the following amount, or so much thereof
3 1 as is necessary, to be used for the purpose designated:
3 2 For the purpose of the tourism-related small business
3 3 program, including not more than $26,000 for salaries,
3 4 support, maintenance, miscellaneous purposes, and for not more
3 5 than the following full-time equivalent positions:
3 6 .................................................. $ 276,000
3 7 ................................................FTEs .50
3 8 EXPLANATION
3 9 This bill establishes the tourism-related small business
3 10 program in the department of economic development. The
3 11 program is designed to provide loans to small businesses which
3 12 are integrally linked to a local tourism attraction.
3 13 The program will provide low-interest loans of up to
3 14 $25,000 for eligible small businesses to expand or start up,
3 15 or for gap financing. Program loans would have a maximum
3 16 repayment period of five years.
3 17 To be eligible to receive a program loan, a small business
3 18 (one with either less than $3 million in average gross income
3 19 over the preceding three years or with fewer than 20 employees
3 20 and operated for profit) must meet the following criteria:
3 21 1. Be located in or near a city with a population of 5,000
3 22 or fewer.
3 23 2. Be operated for profit and integrally linked
3 24 financially to a local tourism attraction either by virtue of
3 25 its proximity to the attraction or due to the nature of the
3 26 small business operation. Examples of businesses which may be
3 27 integrally linked to a tourism attractions are bed and
3 28 breakfast establishments, recreational equipment rental
3 29 businesses, and businesses producing items related to the
3 30 tourism attraction.
3 31 3. Demonstrate a business need for the loan which cannot
3 32 be met through other means.
3 33 In addition, the department of economic development is to
3 34 evaluate applications in the light of the existence of a local
3 35 or regional tourism plan, the extent of local involvement in
4 1 the small business, and the amount of coordination between the
4 2 community, the tourism attraction, and the small business.
4 3 Small businesses which are denied a program loan shall be
4 4 informed of the denial in writing and may reapply for a
4 5 program loan after addressing the reasons for denial.
4 6 The bill also appropriates $276,000 and one-half of one
4 7 full-time equivalent position to the department of economic
4 8 development for the purposes of the program. The department
4 9 is limited to $26,000 in staff and administrative expenses for
4 10 the program. The program would have $250,000 available for
4 11 loans.
4 12 LSB 3840HH 76
4 13 mk/cf/24
Text: HF02294 Text: HF02296 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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