Text: HSB00058                          Text: HSB00060
Text: HSB00000 - HSB00099               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 59

Bill Text

PAG LIN
  1  1    Section 1.  Section 15.108, subsection 7, paragraph i, Code
  1  2 2003, is amended by striking the paragraph.
  1  3    Sec. 2.  Section 15.246, unnumbered paragraph 1, Code 2003,
  1  4 is amended to read as follows:
  1  5    The department shall establish and administer a case
  1  6 management program, contingent upon the availability of funds
  1  7 authorized for the program, and conducted in coordination with
  1  8 the self-employment loan program and other state or federal
  1  9 programs providing financial or technical assistance
  1 10 administered by the department.  The case management program
  1 11 shall assist in furnishing information about available
  1 12 assistance to clients seeking to establish or expand small
  1 13 business ventures, furnishing information about available
  1 14 financial or technical assistance, evaluating small business
  1 15 venture proposals, completing viable business start-up or
  1 16 expansion plans, and completing applications for financial or
  1 17 technical assistance under the programs administered by the
  1 18 department.  As used in this section, "client" means a low-
  1 19 income person eligible for assistance under the self-
  1 20 employment loan program established in section 15.241.
  1 21    Sec. 3.  Section 15.247, subsection 2, Code 2003, is
  1 22 amended to read as follows:
  1 23    2.  A "targeted small business financial assistance program
  1 24 account" is established within the strategic investment fund
  1 25 created in section 15.313, to provide for loans, loan
  1 26 guarantees, revolving loans, loans secured by accounts
  1 27 receivable, or grants to targeted small businesses and to low-
  1 28 income persons establishing or expanding small business
  1 29 ventures.  A targeted small business or low-income person in
  1 30 any year shall receive under this program not more than
  1 31 twenty-five fifty thousand dollars in a loan, or grant, and
  1 32 not more than forty thousand dollars in a or guarantee, or a
  1 33 combination of loans, grants, or guarantees.  The program
  1 34 shall provide guarantees not to exceed seventy-five percent
  1 35 for loans made by qualified lenders.  The department shall
  2  1 establish a financial assistance reserve account from funds
  2  2 allocated to the program account, from which any default on a
  2  3 guaranteed loan under this section shall be paid.  In
  2  4 administering the program the department shall not guarantee
  2  5 loan values in excess of the amount credited to the reserve
  2  6 account and only moneys set aside in the loan reserve account
  2  7 may be used for the payment of a default.  The department
  2  8 shall maintain records of all financial assistance approved
  2  9 pursuant to this section and information regarding the
  2 10 effectiveness of the financial assistance in establishing or
  2 11 expanding small business ventures.
  2 12    Sec. 4.  Section 15.313, subsection 1, paragraph b, Code
  2 13 2003, is amended to read as follows:
  2 14    b.  All unencumbered and unobligated funds from the self-
  2 15 employment loan program, the targeted small business financial
  2 16 assistance program, the microenterprise development revolving
  2 17 fund, financing rural economic development or successor loan
  2 18 program, and the value-added agricultural products and
  2 19 processes financial assistance fund remaining on June 30,
  2 20 1992, and all repayments of loans or other awards or
  2 21 recaptures of awards made under these programs.
  2 22    Sec. 5.  Section 15E.120, subsections 5 and 6, Code 2003,
  2 23 are amended to read as follows:
  2 24    5.  Loan repayments received by the Iowa department of
  2 25 economic development shall be deposited into a special account
  2 26 to be used at its discretion as matching funds to attract
  2 27 financial assistance from and to participate in programs with
  2 28 national rural development and finance corporations or as
  2 29 provided in subsection 6.  Funds in this special account shall
  2 30 not revert to the state general fund at the end of any fiscal
  2 31 year.  If the programs for which the funds in the special
  2 32 account are to be used are terminated or expire, the funds in
  2 33 the special account and funds that would be repaid, if any, to
  2 34 the special account shall be transferred or repaid to the
  2 35 community economic betterment account of the strategic
  3  1 investment fund established in section 15.313.
  3  2    6.  If the Iowa department of economic development
  3  3 determines that sufficient funds exist in the special account
  3  4 provided in subsection 5 for the purposes provided in
  3  5 subsection 5, up to twenty-five percent of the loan repayments
  3  6 for the fiscal year received by the Iowa department of
  3  7 economic development may be deposited in the revolving loan
  3  8 fund to operate the self-employment loan program as both were
  3  9 established in section 15.241 under the department of economic
  3 10 development.  Funds in this revolving loan fund shall not
  3 11 revert to the state general fund at the end of any fiscal
  3 12 year.  Loan repayments from the self-employment loan program
  3 13 shall be deposited in the revolving loan fund.  Deposits of
  3 14 funds under this subsection may occur for the fiscal years
  3 15 beginning July 1, 1986, July 1, 1987, July 1, 1988, and July
  3 16 1, 1989.
  3 17    Sec. 6.  Section 15.241, Code 2003, is repealed.  
  3 18                           EXPLANATION
  3 19    This bill relates to economic development programs for
  3 20 targeted small businesses.
  3 21    The bill amends the targeted small business financial
  3 22 assistance program.  The bill expands the eligible financial
  3 23 assistance recipients to include low-income persons
  3 24 establishing or expanding small business ventures.  The bill
  3 25 increases the amount of financial assistance that can be
  3 26 received as a loan, grant, or guarantee under the program to
  3 27 $50,000.  The bill requires the department of economic
  3 28 development to maintain records of all financial assistance
  3 29 approved under the targeted small business financial
  3 30 assistance program and information regarding the effectiveness
  3 31 of the financial assistance in establishing or expanding small
  3 32 business ventures.
  3 33    The bill abolishes the Iowa self-employment loan program
  3 34 and makes conforming amendments.  
  3 35 LSB 1264DP 80
  4  1 tm/cls/14 
     

Text: HSB00058                          Text: HSB00060
Text: HSB00000 - HSB00099               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

Return To Home index


© 2003 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: Tue Feb 18 11:45:08 CST 2003
URL: /DOCS/GA/80GA/Legislation/HSB/00000/HSB00059/030203.html
jhf