House
Study
Bill
725
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
ECONOMIC
GROWTH
BILL
BY
CHAIRPERSON
THOMAS)
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
microenteprise
development
organizations.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
6237HC
(5)
83
tw/nh
H.F.
_____
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
6237HC
(5)
83
tw/nh
1/
4
H.F.
_____
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
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H.F.
_____
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
6237HC
(5)
83
tw/nh
3/
4
H.F.
_____
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
6237HC
(5)
83
tw/nh
4/
4