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Senate File 325 - IntroducedA Bill ForAn Act 1 relating to the Iowa small business relief program,
2making appropriations, and including effective date
3provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. IOWA SMALL BUSINESS RELIEF PROGRAM.
21. a. There is appropriated from the general fund of the
3state to the economic development authority for the fiscal year
4beginning July 1, 2020, and ending June 30, 2021, the following
5amount, or so much thereof as is necessary, to be used for the
6purposes designated:
7For the Iowa small business relief program:
.................................................. $8100,000,000
9b. Eligibility for grants awarded under the program shall be
10expanded to include the following:
11(1) Sole proprietors that were an established business
12prior to March 17, 2020, who are owners and that had no
13employees.
14(2) Businesses that employed up to fifty individuals prior
15to March 17, 2020.
16c. Eligibility requirements for grants awarded under the
17program to businesses, which includes sole proprietors, must
18include all of the following:
19(1) The business must have been physically located in Iowa
20prior to March 17, 2020, and must currently be physically
21located in Iowa.
22(2) The business must not have been in violation of any
23federal, state, or local environmental or worker safety laws,
24rules, or regulations at any time in the last five years.
25(3) The business must only employ individuals legally
26authorized to work in the state.
27(4) The business must not currently be in bankruptcy.
28d. Grants shall be between five and twenty thousand dollars
29and a business shall not receive more than one grant under the
30program.
312. Notwithstanding section 8.33, moneys appropriated in
32this section that remain unencumbered or unobligated at the
33close of the fiscal year shall not revert but shall remain
34available for expenditure for the purposes designated until the
35close of the succeeding fiscal year.
-1-1 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
2importance, takes effect upon enactment.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6For the fiscal year beginning July 1, 2020, and ending June
730, 2021, this bill appropriates $100 million from the general
8fund of the state to the economic development authority for the
9Iowa small business relief program (program).
10The bill expands eligibility under the program to include
11sole proprietors that were an established business prior to
12March 17, 2020, who are owners and that had no employees; and
13businesses that employed up to 50 individuals prior to March
1417, 2020. Current eligibility under the program includes
15sole proprietors that had at least one part-time or full-time
16employee other than the owner, and businesses that employed
17between 2 and 25 employees.
18The bill adds additional requirements as specified in the
19bill for businesses, which includes sole proprietors, to be
20eligible for a grant. The bill specifies that the minimum
21grant that may be awarded is $5,000 and the maximum grant that
22may be awarded under the program is $20,000. The current
23maximum grant amount is $25,000. Under the bill, a business is
24only eligible for one grant under the program.
25The moneys appropriated that remain unencumbered or
26unobligated at the close of the fiscal year do not revert and
27remain available for expenditure for the program until June 30,
282022.
29The bill is effective upon enactment.
-2-ko/jh
2making appropriations, and including effective date
3provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. IOWA SMALL BUSINESS RELIEF PROGRAM.
21. a. There is appropriated from the general fund of the
3state to the economic development authority for the fiscal year
4beginning July 1, 2020, and ending June 30, 2021, the following
5amount, or so much thereof as is necessary, to be used for the
6purposes designated:
7For the Iowa small business relief program:
.................................................. $8100,000,000
9b. Eligibility for grants awarded under the program shall be
10expanded to include the following:
11(1) Sole proprietors that were an established business
12prior to March 17, 2020, who are owners and that had no
13employees.
14(2) Businesses that employed up to fifty individuals prior
15to March 17, 2020.
16c. Eligibility requirements for grants awarded under the
17program to businesses, which includes sole proprietors, must
18include all of the following:
19(1) The business must have been physically located in Iowa
20prior to March 17, 2020, and must currently be physically
21located in Iowa.
22(2) The business must not have been in violation of any
23federal, state, or local environmental or worker safety laws,
24rules, or regulations at any time in the last five years.
25(3) The business must only employ individuals legally
26authorized to work in the state.
27(4) The business must not currently be in bankruptcy.
28d. Grants shall be between five and twenty thousand dollars
29and a business shall not receive more than one grant under the
30program.
312. Notwithstanding section 8.33, moneys appropriated in
32this section that remain unencumbered or unobligated at the
33close of the fiscal year shall not revert but shall remain
34available for expenditure for the purposes designated until the
35close of the succeeding fiscal year.
-1-1 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
2importance, takes effect upon enactment.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6For the fiscal year beginning July 1, 2020, and ending June
730, 2021, this bill appropriates $100 million from the general
8fund of the state to the economic development authority for the
9Iowa small business relief program (program).
10The bill expands eligibility under the program to include
11sole proprietors that were an established business prior to
12March 17, 2020, who are owners and that had no employees; and
13businesses that employed up to 50 individuals prior to March
1417, 2020. Current eligibility under the program includes
15sole proprietors that had at least one part-time or full-time
16employee other than the owner, and businesses that employed
17between 2 and 25 employees.
18The bill adds additional requirements as specified in the
19bill for businesses, which includes sole proprietors, to be
20eligible for a grant. The bill specifies that the minimum
21grant that may be awarded is $5,000 and the maximum grant that
22may be awarded under the program is $20,000. The current
23maximum grant amount is $25,000. Under the bill, a business is
24only eligible for one grant under the program.
25The moneys appropriated that remain unencumbered or
26unobligated at the close of the fiscal year do not revert and
27remain available for expenditure for the program until June 30,
282022.
29The bill is effective upon enactment.
-2-ko/jh