House File 2431 - Introduced HOUSE FILE 2431 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HSB 725) A BILL FOR An Act relating to the allocation of moneys under the grow 1 Iowa values fund for purposes of making grants to certain 2 microenterprise development organizations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6237HV (3) 83 tw/nh

H.F. 2431 Section 1. Section 15.240, Code 2009, is amended to read as 1 follows: 2 15.240 Community microenterprise Microenterprise development 3 organization grant program. 4 1. The department shall award grants to community pursuant 5 to this section to microenterprise development organizations. 6 The grants may be awarded to qualifying lead microenterprise 7 development organizations or to community microenterprise 8 development organizations. 9 2. To qualify for a grant, a lead microenterprise 10 development organization shall meet all of the following 11 conditions: 12 a. Be a nonprofit organization exempt from federal taxation 13 under section 501(c) of the Internal Revenue Code. 14 b. Have the capability to provide access to microfinancing 15 or microloan programs. 16 c. Have programs or resources that provide for the following 17 services: 18 (1) The provision of market information for local 19 businesses. Market information typically includes high 20 quality data and supporting analysis on various product and 21 consumer markets, the demographics of a community’s residents, 22 methods for targeting the various customer markets within the 23 community, and techniques for enhancing competitive advantages. 24 (2) The growth of social and business relationships that 25 facilitates productive partnerships among business owners, 26 industry groups, public officials and public sector supporters, 27 and academic institutions. 28 (3) The provision of affordable access to business 29 information databases, geographic information system services 30 and consulting, marketing data and analysis, best practices for 31 effective advertising and internet search engine optimization, 32 and demographic data analysis. 33 d. Be an organization whose stated mission is to provide 34 ongoing training, technical assistance, and microfinancing 35 -1- LSB 6237HV (3) 83 tw/nh 1/ 4

H.F. 2431 expertise to small businesses and microenterprises in order to 1 create jobs and expand family incomes in the state. 2 3. A grant shall not be awarded to a community 3 microenterprise development organization unless the community 4 microenterprise development organization can match at least 5 twenty percent of the funds to be awarded. The matching funds 6 may be from private foundations, federal or local government 7 funds, financial institutions, or individuals. 8 2. 4. In awarding grants to community microenterprise 9 development organizations, the department shall consider make 10 awards to the best applicants after considering all of the 11 following: 12 a. The overall geographic diversity of the applicants for 13 grants, including both urban and rural communities. 14 b. The ability of a community microenterprise development 15 organization to provide services to low-income and 16 moderate-income individuals and underserved communities. 17 In determining the ability to provide services, all of the 18 following shall be considered: 19 (1) The ability to identify potential microentrepreneurs 20 within a community. 21 (2) The capacity to perform client assessment and 22 screening. 23 (3) The ability to provide business training and technical 24 assistance, including information about access to markets, 25 business management, and financial literacy. 26 (4) The capacity to provide assistance in securing 27 financing. 28 c. The scope of services offered and the efficient delivery 29 of such services, especially to low-income, moderate-income, 30 and minority individuals. 31 d. The ability to monitor the progress of clients and to 32 identify those clients in need of additional technical and 33 financial assistance. 34 e. The ability to build relationships and coordinate 35 -2- LSB 6237HV (3) 83 tw/nh 2/ 4

H.F. 2431 resources with other entities supporting microentrepreneurs. 1 These entities may include but are not limited to community 2 colleges, cooperative extension services, small business 3 development centers, chambers of commerce, community economic 4 development organizations, workforce centers, and community 5 nonprofit service providers that serve low-income and 6 moderate-income individuals. 7 f. The ability to coordinate activities with any targeted 8 small business advocate services operating in the community. 9 g. The amount and sufficiency of operating funds available. 10 h. Any other criteria the department deems reasonable. 11 5. An organization receiving a grant pursuant to this 12 section shall submit an annual report to the department that 13 describes how the grant funds were used and what results were 14 achieved. 15 Sec. 2. Section 15G.111, subsection 9, paragraph b, Code 16 Supplement 2009, is amended to read as follows: 17 b. Of the moneys allocated under this subsection, 18 the department may use up to fifty thousand dollars each 19 fiscal year during the fiscal period beginning July 1, 20 2009, and ending June 30, 2015, for purposes of providing 21 training, materials, and assistance to Iowa business 22 resource centers making grants to microenterprise development 23 organizations pursuant to section 15.240 . 24 EXPLANATION 25 This bill relates to grants for certain microenterprise 26 development organizations. 27 Currently, Code section 15.240 provides that grants shall 28 be made to certain community microenterprise development 29 organizations, but no moneys have been appropriated for 30 such purposes. This bill adds certain lead microenterprise 31 development organizations to the list of organizations eligible 32 for grants under the program and provides requirements for such 33 organizations to qualify for a grant. 34 Currently, of the moneys allocated for regional financial 35 -3- LSB 6237HV (3) 83 tw/nh 3/ 4

H.F. 2431 assistance under the grow Iowa values fund, the department is 1 authorized to spend up to $50,000 each fiscal year for purposes 2 of providing training, materials, and assistance to Iowa 3 business resource centers. The bill allocates this $50,000 for 4 purposes of the microenterprise development organization grant 5 program in Code section 15.240. 6 -4- LSB 6237HV (3) 83 tw/nh 4/ 4