Text: HF00272 Text: HF00274 Text: HF00200 - HF00299 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 a for-profit business
1 26 integrally linked to a tourism attraction either by virtue of
1 27 the location of the small business in relation to the tourism
1 28 attraction or by virtue of the nature of the small business.
1 29 Examples of businesses which may be integrally linked to
1 30 tourism include bed and breakfast establishments, small
1 31 businesses producing souvenir, craft, or art items related to
1 32 the tourism attraction, small businesses providing
1 33 transportation services related to the tourism attraction, and
1 34 retail or commercial establishments such as recreational
1 35 equipment rental businesses. The small business shall
2 1 demonstrate that at least half its revenue is or will be
2 2 derived from persons in the area due to the existence of the
2 3 tourism attraction.
2 4 2. The small business can demonstrate a financial need for
2 5 the funds. Financial need may be shown through statements
2 6 from local financial institutions that the small business
2 7 cannot obtain all the financing it needs from the financial
2 8 institutions under the usual lending standards of the
2 9 institutions, or through financial records or other means.
2 10 Sec. 5. NEW SECTION. 15.355 RATING FACTORS AND APPROVAL.
2 11 1. In determining whether to make a program loan to an
2 12 eligible small business, the department shall also consider
2 13 other factors, including the following:
2 14 a. Whether a local or regional tourism plan has been
2 15 adopted for the area in which the small business is or will be
2 16 located. This may include information developed as part of
2 17 the community economic preparedness program.
2 18 b. The extent of local involvement in promoting or
2 19 assisting the small business.
2 20 c. The coordination between the community, the small
2 21 business, and the operators of the tourism attraction, if any.
2 22 2. A small business which receives a program loan shall
2 23 enter into an agreement with the department specifying the
2 24 terms and conditions of the loan, including any limitation on
2 25 the use of the funds.
2 26 3. A small business which is denied a program loan shall
2 27 be notified in writing of the reasons for the denial. A small
2 28 business which is denied a program loan may reapply for a
2 29 program loan. The application shall address the reasons for
2 30 the denial of the previous application.
2 31 Sec. 6. APPROPRIATION. There is appropriated from the
2 32 general fund of the state to the department of economic
2 33 development for the fiscal year beginning July 1, 1997, and
2 34 ending June 30, 1998, the following amount, or so much thereof
2 35 as is necessary, to be used for the purpose designated:
3 1 For the purpose of the tourism-related small business
3 2 program, including not more than $26,000 for salaries,
3 3 support, maintenance, miscellaneous purposes, and for not more
3 4 than the following full-time equivalent position:
3 5 .................................................. $ 276,000
3 6 ................................................FTEs .50
3 7 EXPLANATION
3 8 This bill establishes the tourism-related small business
3 9 program in the department of economic development. The
3 10 program is designed to provide loans to small businesses which
3 11 are integrally linked to a local tourism attraction.
3 12 The program will provide low-interest loans of up to
3 13 $25,000 for eligible small businesses to expand or start up,
3 14 or for gap financing. Program loans would have a maximum
3 15 repayment period of five years.
3 16 To be eligible to receive a program loan, a small business
3 17 (one with either less than $3 million in average gross income
3 18 over the preceding three years or with fewer than 20 employees
3 19 and operated for profit) must meet the following criteria:
3 20 1. Be operated for profit and integrally linked
3 21 financially to a local tourism attraction either by virtue of
3 22 its proximity to the attraction or due to the nature of the
3 23 small business operation. Examples of businesses which may be
3 24 integrally linked to a tourism attraction include bed and
3 25 breakfast establishments, recreational equipment rental
3 26 businesses, and businesses producing items related to the
3 27 tourism attraction.
3 28 2. Demonstrate a business need for the loan which cannot
3 29 be met through other means.
3 30 In addition, the department of economic development is to
3 31 evaluate applications in the light of the existence of a local
3 32 or regional tourism plan, the extent of local involvement in
3 33 the small business, and the amount of coordination between the
3 34 community, the tourism attraction, and the small business.
3 35 Small businesses which are denied a program loan shall be
4 1 informed of the denial in writing and may reapply for a
4 2 program loan after addressing the reasons for denial.
4 3 The bill also appropriates $276,000 and one-half of one
4 4 full-time equivalent position to the department of economic
4 5 development for the purposes of the program. The department
4 6 is limited to $26,000 in staff and administrative expenses for
4 7 the program. The program would have $250,000 available for
4 8 loans.
4 9 LSB 1586HH 77
4 10 tm/cf/24
Text: HF00272 Text: HF00274 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: House Bills and Amendments (77th General Assembly)
© 1997 Cornell College and League of Women Voters of Iowa
Comments about this site or page? webmaster@legis.iowa.gov. Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Feb 26 03:40:32 CST 1997
URL: /DOCS/GA/77GA/Legislation/HF/00200/HF00273/970218.html
jhf