1. The department shall establish a program to effectuate the purposes of this part by providing financial assistance for small business gap financing, new business opportunities, and new product and entrepreneurial development. These purposes may be accomplished by providing the following types of assistance:
a. A principal buy-down program to reduce the principal of a business loan.
b. An interest buy-down program to reduce the interest of a business loan.
c. Loans or forgivable loans to aid in economic development.
d. Loan guarantees for business loans made by commercial lenders.
e. Equity-like investments.
2. Only a political subdivision of this state may apply to receive funds for any of the purposes specified in subsection 1. The political subdivision shall make application to the department specifying the purpose for which the funds will be used.
3. The department shall not provide more than one million dollars for any project, unless approved by at least two-thirds of the members of the economic development board.
4. Assistance approved by the board shall be utilized by the business within two years of the date of the approval of the assistance. Funds not utilized in accordance with this subsection shall revert to the control of the board. The business may reapply for assistance in that case.
92 Acts, ch 1244, § 21; 95 Acts, ch 204, § 15
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