Senate Study Bill 1100
SENATE FILE
BY (PROPOSED COMMITTEE ON
REBUILD IOWA BILL BY
CHAIRPERSON HOGG)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to disaster recovery for businesses through the
2 loan and guarantee program and other activities by the
3 department of economic development and providing an effective
4 date.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 1844SC 83
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PAG LIN
1 1 Section 1. Section 15.108, subsection 9, Code 2009, is
1 2 amended by adding the following new paragraph:
1 3 NEW PARAGRAPH. g. By thirty days after the effective date
1 4 of this Act, establish, maintain, and market an internet
1 5 website for purposes of providing information regarding
1 6 federal, state, or other financial resources for Iowa
1 7 businesses. The internet website shall use a different domain
1 8 name than the domain name used by the department for other
1 9 departmental information dissemination.
1 10 Sec. 2. Section 15E.222, subsection 1, paragraphs a and c,
1 11 Code 2009, are amended to read as follows:
1 12 a. That in the midst of weak economic climates and during
1 13 recovery periods following natural disasters, small and
1 14 medium=sized businesses, in general, and certain targeted
1 15 industry businesses, businesses affected by disaster, and
1 16 other qualified businesses, in particular, have a particularly
1 17 high need for capital and financing and may not qualify for
1 18 conventional financing.
1 19 c. That, to enhance competitiveness and foster economic
1 20 development, this state must focus on growth in certain
1 21 specific targeted industry businesses and other qualified
1 22 businesses, especially during a time of war in the midst of
1 23 weak economic climates and during recovery periods following
1 24 natural disasters.
1 25 Sec. 3. Section 15E.222, subsection 2, paragraphs a and b,
1 26 Code 2009, are amended to read as follows:
1 27 a. To create incentives and assistance to increase the
1 28 flow of private capital to targeted industry businesses,
1 29 businesses affected by disaster, and other qualified
1 30 businesses.
1 31 b. To promote industrial modernization and technology
1 32 adoption, particularly with respect to investment that
1 33 promotes environmental sustainability.
1 34 Sec. 4. Section 15E.222, subsection 2, Code 2009, is
1 35 amended by adding the following new paragraphs:
2 1 NEW PARAGRAPH. e. To promote the stabilization and growth
2 2 of Iowa's economy.
2 3 NEW PARAGRAPH. f. To assist in the rebuilding of and
2 4 fostering economic growth in communities affected by natural
2 5 disasters.
2 6 Sec. 5. Section 15E.223, subsection 3, Code 2009, is
2 7 amended to read as follows:
2 8 3. a. "Qualified business" means an any of the following:
2 9 (1) An existing or proposed business entity with an annual
2 10 average number of employees not exceeding two hundred
2 11 employees.
2 12 (2) A business located in an area declared a disaster area
2 13 by the president of the United States.
2 14 (3) A business filling a critical need as determined by a
2 15 resolution of a city council provided the critical need is in
2 16 conformance with the comprehensive plan of the city and the
2 17 business is located in the city. For purposes of this
2 18 subparagraph, "located in the city" means a business located
2 19 within two miles of the city limits or within the city limits.
2 20 b. "Qualified business" does not include businesses
2 21 engaged primarily in retail sales, real estate, or the
2 22 provision of health care or other professional services.
2 23 c. "Qualified business" includes professional services
2 24 businesses that provide services to targeted industry
2 25 businesses or other entities.
2 26 Sec. 6. Section 15E.224, subsection 1, Code 2009, is
2 27 amended to read as follows:
2 28 1. The department shall establish and administer a loan
2 29 and credit guarantee program. The department, pursuant to
2 30 agreements with financial institutions, shall provide loan and
2 31 credit guarantees, or other forms of credit guarantees for
2 32 qualified businesses and targeted industry businesses for
2 33 eligible project costs. The department may invest up to ten
2 34 percent of the assets of the loan and credit guarantee fund,
2 35 or five hundred thousand dollars, whichever is greater, to
3 1 provide loan and credit guarantees or other forms of credit
3 2 guarantees for eligible project costs to microenterprises
3 3 located in a municipality with a population under fifty
3 4 thousand that is not contiguous to a municipality with a
3 5 population of fifty thousand or more. For purposes of this
3 6 division, "microenterprise" means a business providing
3 7 services with five or fewer full=time equivalent employee
3 8 positions. A loan or credit guarantee provided under the
3 9 program may stand alone or may be used in conjunction with or
3 10 to enhance other loans or credit guarantees offered by
3 11 private, state, or federal entities. The department may
3 12 purchase insurance to cover defaulted loans meeting the
3 13 requirements of the program. However, the department shall
3 14 not in any manner directly or indirectly pledge the credit of
3 15 the state. Eligible project costs include expenditures for
3 16 productive equipment and machinery, working capital for
3 17 operations and export transactions, research and development,
3 18 marketing, improvements that increase the energy efficiency or
3 19 sustainability of a business, and such other costs as the
3 20 department may so designate. Eligible project costs include
3 21 improvements and repairs to property, including real property,
3 22 of a qualified business.
3 23 Sec. 7. Section 15E.224, subsection 6, Code 2009, is
3 24 amended by adding the following new paragraph:
3 25 NEW PARAGRAPH. e. That the loan or credit guarantee does
3 26 not invoke or pledge the credit of the state and that any
3 27 claim made pursuant to the loan or credit guarantee shall be
3 28 limited to the terms and amount of the loan or credit
3 29 guarantee and to the loan and credit guarantee fund.
3 30 Sec. 8. EFFECTIVE DATE. This Act, being deemed of
3 31 immediate importance, takes effect upon enactment.
3 32 EXPLANATION
3 33 This bill relates to disaster recovery for businesses.
3 34 The bill requires the department of economic development to
3 35 establish, maintain, and market an internet website for
4 1 purposes of providing information regarding federal, state,
4 2 and other financial resources for Iowa businesses.
4 3 The bill expands the definition of "qualified business"
4 4 under the loan and credit guarantee program to include a
4 5 business located in an area declared a disaster area by the
4 6 president of the United States and a business filling a
4 7 critical need as determined by a city council provided the
4 8 critical need is in conformance with the comprehensive plan of
4 9 the city and the business is located in the city.
4 10 The bill provides that eligible costs under the loan and
4 11 credit guarantee program include costs for improvements that
4 12 increase energy efficiency or sustainability of a business and
4 13 costs for improvements and repairs to property, including real
4 14 property, of a qualified business.
4 15 The bill takes effect upon enactment.
4 16 LSB 1844SC 83
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