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House Journal: Page 1552: Thursday, April 13, 1995

15   borrowers to which the loans were made.
16     Sec. ___.  Section 12.40, Code 1995, is amended to
17   read as follows:
18     12.40  RURAL SMALL BUSINESS TRANSFER LINKED
19   INVESTMENT LOAN PROGRAM.
20     The treasurer of state shall adopt rules consistent
21   with this division to implement a rural small business
22   transfer linked investment loan program to maintain
23   and expand existing employment opportunities and the
24   provision of retail goods in small rural communities
25   by assisting in the transfer of ownership of retail-
26   oriented businesses which, in the absence of
27   sufficient financial assistance, may close.  The rules
28   shall be in accordance with the following:
29     1.  As used in this section, "rural small business"
30   means an existing rural small business, for which
31   local competition does not exist in the principal
32   realm of business activity of that business, and the
33   loss of which will work a hardship on the rural
34   community.  A rural small business may include a
35   grocery store, drug store, gasoline station,
36   convenience store, hardware business, or farm supply
37   store.  A rural small business does not include a new
38   business.
39     2.  The treasurer of state shall adopt rules
40   consistent with this division to implement a rural
41   small business transfer linked investment loan program
42   to further the following purposes:
43     a.  To promote the business prosperity and economic
44   welfare of Iowa through promoting the prosperity and
45   economic welfare of rural Iowa.
46     b.  To maintain and expand existing employment
47   opportunities and the provision of retail goods on a
48   local level in small rural communities by assisting in
49   the transfer of ownership of retail-oriented
50   businesses where, in the absence of sufficient

Page 5

 1   financial assistance, the businesses may close.
 2     3. 2.  Upon the placement of linked investment
 3   moneys with an eligible lending institution, the
 4   institution is required to lend money to a person
 5   pursuant to rules adopted by the treasurer of state
 6   for the transfer of a rural small business.  The In
 7   order to qualify as an eligible borrower, the rural
 8   small business must be located in a city with a
 9   population of five thousand or less.  A city located
10   in a county with a population in excess of three
11   hundred thousand, if the city is contiguous to another
12   city in the county and that other city is contiguous
13   to the largest city in that county, shall be
14   considered as having a population in excess of five
15   thousand ineligible to qualify as a borrower.
16     4. 3.  The In order to qualify as an
eligible
17   borrower, the transfer of the rural small business
18   must be by purchase, lease-purchase, or contract of

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 1)

© 1995 Cornell College and League of Women Voters of Iowa

Comments? hjourn@legis.iowa.gov.

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