House Journal: Page 2233: Tuesday, June 3, 2003
Page 22
1 loan and credit guarantee advisory board, establish
2 and administer a loan and credit guarantee program.
3 The department, pursuant to agreements with financial
4 institutions, shall provide loan and credit
5 guarantees, or other forms of credit guarantees for
6 qualified businesses and targeted industry businesses
7 for eligible project costs. A loan or credit
8 guarantee provided under the program may stand alone
9 or may be used in conjunction with or to enhance other
10 loans or credit guarantees, offered by private, state,
11 or federal entities. The department may purchase
12 insurance to cover defaulted loans meeting the
13 requirements of the program. However, the department
14 shall not in any manner directly or indirectly pledge
15 the credit of the state. Eligible project costs
16 include expenditures for productive equipment and
17 machinery, working capital for operations and export
18 transactions, research and development, marketing, and
19 such other costs as the department may so designate.
20 2. A loan or credit guarantee or other form of
21 credit guarantee provided under the program to a
22 participating financial institution for a single
23 qualified business or targeted industry business shall
24 not exceed one million dollars in value. Loan or
25 credit guarantees or other forms of credit guarantees
26 provided under the program to more than one
27 participating financial institution for a single
28 qualified business or targeted industry business shall
29 not exceed ten million dollars in value.
30 3. In administering the program, the department
31 shall consult and cooperate with financial
32 institutions in this state and with the loan and
33 credit guarantee advisory board. Administrative
34 procedures and application procedures, as practicable,
35 shall be responsive to the needs of qualified
36 businesses, targeted industry businesses, and
37 financial institutions, and shall be consistent with
38 prudent investment and lending practices and criteria.
39 4. Each participating financial institution shall
40 identify and underwrite potential lending
41 opportunities with qualified businesses and targeted
42 industry businesses. Upon a determination by a
43 participating financial institution that a qualified
44 business or targeted industry business meets the
45 underwriting standards of the financial institution,
46 subject to the approval of a loan or credit guarantee,
47 the financial institution shall submit the
48 underwriting information and a loan or credit
49 guarantee application to the department.
50 5. The department, with the advice of the loan and
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League of Women Voters of Iowa
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