House File 2643 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON VETERANS
                                           AFFAIRS

                                       (SUCCESSOR TO HF 2495)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the small business linked investments program
  2    by changing the allocation of available moneys from program
  3    investments and raising the limit on qualifying net worth.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 6361HV 82
  6 tw/nh/8

PAG LIN



  1  1    Section 1.  Section 12.34, subsection 1, Code 2007, is
  1  2 amended to read as follows:
  1  3    1.  The treasurer of state may invest up to the lesser of
  1  4 one hundred eight million dollars or twenty=five percent of
  1  5 the balance of the state pooled money fund in certificates of
  1  6 deposit in eligible lending institutions as provided in
  1  7 section 12.32, this section, and sections 12.35 through 12.43.
  1  8 One=half
  1  9    a.  Forty percent of the moneys invested pursuant to this
  1 10 section shall be made available under the program implemented
  1 11 pursuant to section 12.43 to increase the availability of
  1 12 lower cost moneys for purposes of injecting needed capital
  1 13 into small businesses which are fifty=one percent or more
  1 14 owned, operated, and actively managed by one or more women,
  1 15 minority persons, or persons with disabilities.  "Disability"
  1 16 means the same as defined in section 15.102, subsection 5.  A
  1 17 "minority person" means the same as defined in section 15.102,
  1 18 subsection 5.
  1 19    b.  Ten percent of the moneys invested pursuant to this
  1 20 section shall be made available under the program implemented
  1 21 pursuant to section 12.43 to increase the availability of
  1 22 lower cost moneys for purposes of injecting needed capital
  1 23 into small businesses which are fifty=one percent or more
  1 24 owned, operated, and actively managed by one or more veterans.
  1 25 For purposes of this paragraph, "veteran" means the same as
  1 26 defined in section 35A.14, subsection 1.
  1 27    c.  The treasurer shall invest the remaining one=half fifty
  1 28 percent of the moneys invested pursuant to this section to
  1 29 support any other eligible applicant as provided in section
  1 30 12.43.
  1 31    Sec. 2.  Section 12.43, subsection 5, unnumbered paragraph
  1 32 1, Code 2007, is amended to read as follows:
  1 33    In order to qualify under this program, all owners of the
  1 34 business or borrowers must not have a combined net worth
  1 35 exceeding seven hundred fifty thousand one million dollars as
  2  1 defined in rules adopted by the treasurer of state pursuant to
  2  2 chapter 17A and the small business must meet all of the
  2  3 following criteria:
  2  4                           EXPLANATION
  2  5    This bill relates to the small business linked investments
  2  6 program.
  2  7    The bill changes the allocation of available moneys
  2  8 invested in the program.  Currently, half of the moneys are
  2  9 available to business owners who are women, minority persons,
  2 10 or persons with disabilities.  The bill changes the allocation
  2 11 of moneys available to women, minority persons, or persons
  2 12 with disabilities to 40 percent and allocates 10 percent to
  2 13 veterans.
  2 14    The bill also changes the net worth requirement for the
  2 15 program.  Currently, in order to qualify for assistance, the
  2 16 combined net worth of all owners of a business or borrowers
  2 17 under the program cannot exceed $750,000.  The bill raises the
  2 18 limit on combined net worth to $1 million.
  2 19 LSB 6361HV 82
  2 20 tw/nh/8