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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 2552SS 77
4 15 tm/jw/5
Text: SF00440 Text: SF00442 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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