HSB 725 (LSB 6237HC (5) 83)

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 Iowa values fund for purposes of making grants to certain microenteprise development organizations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15.240, Code 2009, is amended to read as follows:
   15.240  Community microenterprise Microenterprise development organization grant program.
   1.  The department shall award grants to community pursuant to this section to microenterprise development organizations.  The grants may be awarded to qualifying lead microenterprise development organizations or to community microenterprise development organizations.
   2.  To qualify for a grant, a lead microenterprise development organization shall meet all of the following conditions:
   a.  Be a nonprofit organization exempt from federal taxation under section 501(c) of the Internal Revenue Code.
   b.  Have the capability to provide access to microfinancing or microloan programs.
   c.  Have programs or resources that provide for the following services:
   (1)  The provision of market information for local businesses. Market information typically includes high quality data and supporting analysis on various product and consumer markets, the demographics of a community’s residents, methods for targeting the various customer markets within the community, and techniques for enhancing competitive advantages.
   (2)  The growth of social and business relationships that facilitates productive partnerships among business owners, industry groups, public officials and public sector supporters, and academic institutions.
   (3)  The provision of affordable access to business information databases, geographic information system services and consulting, marketing data and analysis, best practices for effective advertising and internet search engine optimization, and demographic data analysis.
   d.  Be an organization whose stated mission is to provide ongoing training, technical assistance, and microfinancing expertise to small businesses and microenterprises in order to create jobs and expand family incomes in the state.
   3.  A grant shall not be awarded to a community microenterprise development organization unless the community microenterprise development organization can match at least twenty percent of the funds to be awarded. The matching funds may be from private foundations, federal or local government funds, financial institutions, or individuals.
   2.  4.  In awarding grants to community microenterprise development organizations, the department shall consider make awards to the best applicants after considering all of the following:
   a.  The overall geographic diversity of the applicants for grants, including both urban and rural communities.
   b.  The ability of a community microenterprise development organization to provide services to low-income and moderate-income individuals and underserved communities. In determining the ability to provide services, all of the following shall be considered:
   (1)  The ability to identify potential microentrepreneurs within a community.
   (2)  The capacity to perform client assessment and screening.
   (3)  The ability to provide business training and technical assistance, including information about access to markets, business management, and financial literacy.
   (4)  The capacity to provide assistance in securing financing.
   c.  The scope of services offered and the efficient delivery of such services, especially to low-income, moderate-income, and minority individuals.
   d.  The ability to monitor the progress of clients and to identify those clients in need of additional technical and financial assistance.
   e.  The ability to build relationships and coordinate resources with other entities supporting microentrepreneurs. These entities may include but are not limited to community colleges, cooperative extension services, small business development centers, chambers of commerce, community economic development organizations, workforce centers, and community nonprofit service providers that serve low-income and moderate-income individuals.
   f.  The ability to coordinate activities with any targeted small business advocate services operating in the community.
   g.  The amount and sufficiency of operating funds available.
   h.  Any other criteria the department deems reasonable.
   5.  An organization receiving a grant pursuant to this section shall submit an annual report to the department that describes how the grant funds were used and what results were achieved.
    Sec. 2.  Section 15G.111, subsection 9, paragraph b, Code Supplement 2009, is amended to read as follows:
   b.  Of the moneys allocated under this subsection, the department may use up to fifty thousand dollars each fiscal year during the fiscal period beginning July 1, 2009, and ending June 30, 2015, for purposes of providing training, materials, and assistance to Iowa business resource centers making grants to microenterprise development organizations pursuant to section 15.240.
EXPLANATION
   This bill relates to grants for certain microenterprise development organizations.
   Currently, Code section 15.240 provides that grants shall be made to certain community microenterprise development organizations, but no moneys have been appropriated for such purposes. This bill adds certain lead microenterprise development organizations to the list of organizations eligible for grants under the program and provides requirements for such organizations to qualify for a grant.
   Currently, of the moneys allocated for regional financial assistance under the grow Iowa values fund, the department is authorized to spend up to $50,000 each fiscal year for purposes of providing training, materials, and assistance to Iowa business resource centers. The bill allocates this $50,000 for purposes of the microenterprise development organization grant program in Code section 15.240.