The treasurer of state shall adopt rules to implement a focused small business linked investments program to increase the availability of lower cost funds to inject needed capital into small businesses owned and operated by women or minorities, which is the public policy of the state. The rules shall be in accordance with the following:
1. As used in this section:
a. "Disability" is defined as provided in section 15.102, subsection 5.
b. "Focused small business" means a new small business which is fifty-one percent or more owned, operated, and actively managed by one or more women, minority persons, or persons with a disability, provided the business meets all the requirements of subsection 5.
c. "Major life activity" is defined as provided in section 15.102, subsection 5.
d. "Minority person" is defined as provided in section 15.102, subsection 5.
2. Loan applications for a focused small business shall be for the purchase of land, machinery, equipment, or licenses, or patent, trademark, or copyright fees and expenses.
3. During the lifetime of this loan program, the maximum amount of assistance that an eligible borrower or business may borrow or receive through this loan program shall be one hundred thousand dollars. An eligible borrower or business under this program shall be limited to one loan from one financial institution.
4. A preference shall be given to those persons who are less able than other persons to secure funds for a focused small business without participation in the focused small business linked investment program.
5. In order to qualify under this program, all owners of the business or borrowers must not have a combined net worth exceeding five hundred thousand dollars as defined in rules adopted by the treasurer of state pursuant to chapter 17A and the focused small business must meet all of the following criteria:
a. Be a for-profit business.
b. Have annual sales of two million dollars or less.
c. Not be operated out of the home of any person, unless the person is eligible for a deduction on federal income taxes pursuant to 26 U.S.C. § 280A.
d. Not involve real estate investments, rental of real estate, leasing of real estate, or real estate speculation.
e. Liquor, beer, and wine sales must not exceed twenty percent of annual sales for establishments holding a class "C" liquor license issued pursuant to section 123.30.
6. Loan proceeds shall not be used to refinance existing debt, including credit card debt. However, proceeds may be used to refinance a short-term bridge loan made in anticipation of the treasurer of state's approval of the linked investment loan package.
7. Eligible lending institutions shall verify the borrower is eligible to participate under the provisions of this section pursuant to rules adopted by the treasurer of state pursuant to chapter 17A.
87 Acts, ch 233, § 128; 88 Acts, ch 1273, § 4; 89 Acts, ch 234, § 9; 94 Acts, ch 1201, §13; 97 Acts, ch 195, §9, 10
Renewal of prior investments pursuant to § 12.34; 96 Acts, ch 1058, § 10, 12
1997 amendment does not apply to loans in effect on May 29, 1997; 97 Acts, ch 195, §10
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