Text: HF00689 Text: HF00691 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 15E.180 ECONOMIC DEVELOPMENT 1 2 BLOCK GRANTS. 1 3 1. A multicommunity development organization which 1 4 annually meets the eligibility requirements of this section 1 5 shall receive, upon application to the department of economic 1 6 development, an economic development block grant of up to one 1 7 hundred thousand dollars each year for a five-year period. 1 8 The department shall determine the amount of the grant for 1 9 which the multicommunity development organization is qualified 1 10 and notify the director of the department of revenue and 1 11 finance of this amount. Recipients may reapply for a second 1 12 grant period. The multicommunity development organization may 1 13 be a multicommunity-based economic development organization, 1 14 or a county or city government economic development 1 15 organization. Block grant moneys shall be paid by the 1 16 treasurer of state out of moneys appropriated for the purpose 1 17 of economic development block grants in the small business 1 18 revolving loan fund. 1 19 2. In order to be eligible to receive block grant moneys, 1 20 the multicommunity development organization shall do all of 1 21 the following: 1 22 a. Provide public or private matching funds of one dollar 1 23 for every two dollars qualified for under subsection 1. 1 24 b. Demonstrate approval from the communities or counties 1 25 served by the multicommunity development organization. 1 26 c. File with the department of economic development a 1 27 five-year economic development plan. The plan must include, 1 28 at a minimum, all of the following components: 1 29 (1) A statement explaining the economic development 1 30 mission of the multicommunity development organization. 1 31 (2) A program to assist existing industry in the 1 32 communities or counties served by the multicommunity 1 33 development organization. 1 34 (3) A program to encourage businesses to locate in the 1 35 communities or counties served by the multicommunity 2 1 development organization and to assist in the start-up of new 2 2 businesses in those communities or counties. 2 3 (4) A plan to market the communities or counties to 2 4 businesses seeking to locate or relocate businesses and to 2 5 market to individuals or businesses the services available 2 6 under the economic development plan. 2 7 (5) A budget for implementation of the plan. 2 8 (6) A minimum of one full-time economic development staff 2 9 person. 2 10 3. Recipients may use block grant moneys for any 2 11 recognized economic development purpose which is consistent 2 12 with state and federal law including, but not limited to, all 2 13 of the following: 2 14 a. Contracting for economic development services. 2 15 b. Distributing block grant moneys to any city, county, or 2 16 community economic development organization. 2 17 c. Using block grant moneys as matching funds for federal 2 18 or state economic development programs. 2 19 d. Developing infrastructure. 2 20 e. Renovating or building speculative shell buildings as 2 21 defined in section 427.1, subsection 27, paragraph "c". 2 22 f. Building housing development infrastructure. 2 23 g. Creating a fund to provide grants or revolving loans to 2 24 businesses. 2 25 h. Funding community marketing activities, including 2 26 tourism marketing. 2 27 i. Funding reasonable expenses of operational costs 2 28 including staff salaries. 2 29 j. Funding for the planning and start-up costs for 2 30 organizing local multicommunity development organizations. 2 31 4. If no multicommunity development organization exists in 2 32 a county, the county board of supervisors may receive a block 2 33 grant to use to organize a multicommunity development 2 34 organization. 2 35 5. A small business revolving loan fund is created as a 3 1 revolving fund in the state treasury under the control of the 3 2 department of economic development consisting of moneys 3 3 appropriated by the general assembly for purposes of economic 3 4 development block grants under this section. The fund shall 3 5 not exceed ten million dollars. Notwithstanding section 8.33, 3 6 all moneys in the small business revolving loan fund which 3 7 remain unexpended or unobligated at the close of the fiscal 3 8 year shall not revert to the general fund of the state but 3 9 shall remain available for expenditure in subsequent fiscal 3 10 years. 3 11 6. At the end of each fiscal year, the department may 3 12 provide low interest loans to any business with fifty or fewer 3 13 employees out of unexpended or unobligated moneys in the small 3 14 business revolving loan fund. Such loans shall be 3 15 administered by the department through a city or county 3 16 government or their designated loan manager. A one time loan 3 17 management fee of not more than five percent of the total loan 3 18 shall be paid to the city, county, or designated loan manager 3 19 and shall be financed in the loan. The maximum loan amount is 3 20 one hundred thousand dollars. The department shall adopt 3 21 rules for the administration of such loans. 3 22 7. This section is repealed effective June 30, 2008. 3 23 EXPLANATION 3 24 This bill provides for economic development block grants to 3 25 be given to qualifying multicommunity development 3 26 organizations. Qualifying block grant recipients may receive 3 27 up to $100,000 per year for a period of five years. 3 28 Multicommunity development organizations may be a 3 29 multicommunity-based economic development organization or a 3 30 county or city government economic development organization. 3 31 This bill provides that in order to be eligible to receive a 3 32 block grant, a multicommunity development organization shall 3 33 provide public or private matching funds or both of one dollar 3 34 for every two dollars qualified for, demonstrate approval from 3 35 the communities or counties served by the organization, and 4 1 file with the department of economic development a five-year 4 2 economic development plan. Block grant moneys may be used for 4 3 any recognized economic development purpose which is 4 4 consistent with state and federal law. 4 5 The bill creates a small business revolving loan fund in 4 6 the state treasury controlled by the department. Annual 4 7 appropriations for purposes of block grants shall be deposited 4 8 in the fund. At the end of each fiscal year, the department 4 9 may provide low interest loans to any business with 50 or 4 10 fewer employees out of unobligated or unexpended moneys in the 4 11 fund. 4 12 The economic development block grant program and the 4 13 revolving loan fund are repealed effective June 30, 2008. 4 14 LSB 2552HH 77 4 15 tm/jw/5
Text: HF00689 Text: HF00691 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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