House File 720 - Introduced HOUSE FILE BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HF 122) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act creating a women entrepreneurs and young professionals in 2 business program. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1969HV 81 5 tm/gg/14 PAG LIN 1 1 Section 1. Section 15.313, subsection 2, Code 2005, is 1 2 amended by adding the following new paragraph: 1 3 NEW PARAGRAPH. h. To provide technical and financial 1 4 assistance to participants in the women entrepreneurs and 1 5 young professionals in business program under section 15.393. 1 6 Sec. 2. NEW SECTION. 15.391 SHORT TITLE. 1 7 This part shall be known and may be cited as the "Women 1 8 Entrepreneurs and Young Professionals in Business Program". 1 9 Sec. 3. NEW SECTION. 15.392 DEFINITIONS. 1 10 As used in this part, unless the context otherwise 1 11 requires: 1 12 1. "Early=stage industry company" means a company with 1 13 three years or less of experience in a particular industry. 1 14 2. "Program" means the women entrepreneurs and young 1 15 professionals in business program established in section 1 16 15.393. 1 17 Sec. 4. NEW SECTION. 15.393 WOMEN ENTREPRENEURS AND 1 18 YOUNG PROFESSIONALS IN BUSINESS PROGRAM. 1 19 1. The department shall establish and administer a program 1 20 to provide financial and technical assistance to early=stage 1 21 industry companies being established by young professionals 1 22 and women entrepreneurs. The program shall encourage the 1 23 development of entrepreneurial venture planning and managerial 1 24 skills in such young professionals and women entrepreneurs in 1 25 conjunction with the delivery of a financial assistance 1 26 program for business start=ups and expansions. 1 27 2. An eligible woman entrepreneur applicant under the 1 28 program is an individual who is participating in or has 1 29 successfully completed a recognized entrepreneurial venture 1 30 development curriculum, or a business whose principal 1 31 participants have successfully completed a recognized 1 32 entrepreneurial venture development curriculum as determined 1 33 by the department. The department of inspections and appeals, 1 34 in cooperation with the department of economic development, 1 35 shall certify that the business is fifty=one percent or more 2 1 owned, operated, and actively managed by one or more women. 2 2 3. An eligible young professional applicant under the 2 3 program is a person under the age of forty. Financial 2 4 assistance to an applicant under this subsection shall be used 2 5 for capital investment expenditures associated with a business 2 6 start=up. 2 7 4. Each application for financial or technical assistance 2 8 submitted to the department must include a business plan, a 2 9 marketing plan, a budget, and a statement of purpose stating 2 10 how any financial assistance received will be used. 2 11 5. Unless otherwise authorized by the director, the 2 12 department shall not provide more than five thousand dollars 2 13 of technical assistance per project and shall not provide more 2 14 than a total of twenty thousand dollars in financial 2 15 assistance per project. 2 16 6. In addition to moneys appropriated for the program, the 2 17 department may allocate moneys from the Iowa strategic 2 18 investment fund under section 15.313 for the administration 2 19 and operation of the program. 2 20 7. The department shall adopt administrative rules 2 21 pursuant to chapter 17A to administer the program. 2 22 EXPLANATION 2 23 This bill creates a women entrepreneurs and young 2 24 professionals in business program. 2 25 The bill provides that the department of economic 2 26 development shall establish and administer a program to 2 27 provide financial and technical assistance to early=stage 2 28 industry companies being established by young professionals 2 29 and women entrepreneurs. 2 30 The bill provides that an eligible woman entrepreneur 2 31 applicant under the program is an individual who is 2 32 participating in or has successfully completed a recognized 2 33 entrepreneurial venture development curriculum, or a business 2 34 whose principal participants have successfully completed a 2 35 recognized entrepreneurial venture development curriculum as 3 1 determined by the department of economic development. The 3 2 bill provides that the department of inspections and appeals, 3 3 in cooperation with the department of economic development, 3 4 shall certify that the business is 51 percent or more owned, 3 5 operated, and actively managed by one or more women. 3 6 The bill provides that each application for financial or 3 7 technical assistance submitted to the department of economic 3 8 development must include a business plan, a marketing plan, a 3 9 budget, and a statement of purpose stating how any financial 3 10 assistance received will be used. 3 11 The bill provides that an eligible young professional 3 12 applicant under the program is a person under the age of 40. 3 13 The bill provides that financial assistance for young 3 14 professionals shall be used for capital investment 3 15 expenditures associated with a business start=up. 3 16 The bill provides that, unless otherwise authorized by the 3 17 director, the department of economic development shall not 3 18 provide more than $5,000 of technical assistance per project 3 19 and shall not provide more than a total of $20,000 in 3 20 financial assistance per project. The bill provides that, in 3 21 addition to moneys appropriated for the program, the 3 22 department may allocate moneys from the Iowa strategic 3 23 investment fund for the administration and operation of the 3 24 program. 3 25 LSB 1969HV 81 3 26 tm:rj/gg/14