Senate File 325 - Introduced SENATE FILE 325 BY WAHLS , GIDDENS , DOTZLER , RAGAN , QUIRMBACH , LYKAM , MATHIS , PETERSEN , BOLKCOM , J. SMITH , TRONE GARRIOTT , JOCHUM , CELSI , HOGG , BOULTON , KINNEY , T. TAYLOR , and BISIGNANO A BILL FOR An Act relating to the Iowa small business relief program, 1 making appropriations, and including effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2431XS (4) 89 ko/jh

S.F. 325 Section 1. IOWA SMALL BUSINESS RELIEF PROGRAM. 1 1. a. There is appropriated from the general fund of the 2 state to the economic development authority for the fiscal year 3 beginning July 1, 2020, and ending June 30, 2021, the following 4 amount, or so much thereof as is necessary, to be used for the 5 purposes designated: 6 For the Iowa small business relief program: 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000,000 8 b. Eligibility for grants awarded under the program shall be 9 expanded to include the following: 10 (1) Sole proprietors that were an established business 11 prior to March 17, 2020, who are owners and that had no 12 employees. 13 (2) Businesses that employed up to fifty individuals prior 14 to March 17, 2020. 15 c. Eligibility requirements for grants awarded under the 16 program to businesses, which includes sole proprietors, must 17 include all of the following: 18 (1) The business must have been physically located in Iowa 19 prior to March 17, 2020, and must currently be physically 20 located in Iowa. 21 (2) The business must not have been in violation of any 22 federal, state, or local environmental or worker safety laws, 23 rules, or regulations at any time in the last five years. 24 (3) The business must only employ individuals legally 25 authorized to work in the state. 26 (4) The business must not currently be in bankruptcy. 27 d. Grants shall be between five and twenty thousand dollars 28 and a business shall not receive more than one grant under the 29 program. 30 2. Notwithstanding section 8.33, moneys appropriated in 31 this section that remain unencumbered or unobligated at the 32 close of the fiscal year shall not revert but shall remain 33 available for expenditure for the purposes designated until the 34 close of the succeeding fiscal year. 35 -1- LSB 2431XS (4) 89 ko/jh 1/ 2

S.F. 325 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 1 importance, takes effect upon enactment. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 For the fiscal year beginning July 1, 2020, and ending June 6 30, 2021, this bill appropriates $100 million from the general 7 fund of the state to the economic development authority for the 8 Iowa small business relief program (program). 9 The bill expands eligibility under the program to include 10 sole proprietors that were an established business prior to 11 March 17, 2020, who are owners and that had no employees; and 12 businesses that employed up to 50 individuals prior to March 13 17, 2020. Current eligibility under the program includes 14 sole proprietors that had at least one part-time or full-time 15 employee other than the owner, and businesses that employed 16 between 2 and 25 employees. 17 The bill adds additional requirements as specified in the 18 bill for businesses, which includes sole proprietors, to be 19 eligible for a grant. The bill specifies that the minimum 20 grant that may be awarded is $5,000 and the maximum grant that 21 may be awarded under the program is $20,000. The current 22 maximum grant amount is $25,000. Under the bill, a business is 23 only eligible for one grant under the program. 24 The moneys appropriated that remain unencumbered or 25 unobligated at the close of the fiscal year do not revert and 26 remain available for expenditure for the program until June 30, 27 2022. 28 The bill is effective upon enactment. 29 -2- LSB 2431XS (4) 89 ko/jh 2/ 2