15.247 - TARGETED SMALL BUSINESS FINANCIAL ASSISTANCE PROGRAM.
15.247 TARGETED SMALL BUSINESS FINANCIAL ASSISTANCE
PROGRAM.
1. As used in this section, "small business" and "targeted
small business" mean the same as defined in section 15.102,
subsections 6 and 7.
2. A "targeted small business financial assistance program" is
established within the department. A targeted small business
financial assistance program account is established within the
strategic investment fund created in section 15.313, to allow the
department to provide for loans, loan guarantees, or grants to
eligible targeted small businesses.
a. A targeted small business in any year shall receive under
this program not more than fifty thousand dollars in a loan, grant,
or guarantee, or a combination of loans, grants, or guarantees. A
grant shall only be awarded when additional financing is secured by
the applicant. In order to receive a grant, the applicant must
demonstrate a minimum of ten percent cash investment in the project.
A targeted small business shall not receive a grant, loan, or
guarantee, or a combination of grants, loans, or guarantees under the
program that provide more than ninety percent funding of a project.
b. The program shall provide guarantees not to exceed eighty
percent for loans of up to seven years made by qualified lenders.
The department shall establish a financial assistance reserve account
from funds allocated to the program account, from which any default
on a guaranteed loan under this section shall be paid. In
administering the program the department shall not guarantee loan
values in excess of the amount credited to the reserve account and
only moneys set aside in the loan reserve account may be used for the
payment of a default.
c. The department shall maintain records of all financial
assistance approved pursuant to this section and information
regarding the effectiveness of the financial assistance in
establishing or expanding small business ventures.
3. All moneys designated for the targeted small business
financial assistance program shall be credited to the program
account. The department shall determine the actuarially sound
reserve requirement for the amount of guaranteed loans outstanding.
4. The department shall adopt rules as necessary for the
administration of the financial assistance program under this
section.
5. The general assembly is not obligated to appropriate moneys to
pay for any defaults or to appropriate moneys to be credited to the
loan reserve account. The loan guarantee program does not obligate
the state except to the extent provided in this section, and the
department in administering the program shall not give or lend the
credit of the state of Iowa.
6. Payments of interest, recaptures of awards, and repayments of
moneys loaned under this program shall be deposited into the
strategic investment fund.
7. In order to receive financial assistance under this section a
targeted small business shall participate in mentoring services from
a targeted small business advocate service provider.
8. a. In order to receive financial assistance under this
section, an application for financial assistance submitted on or
after July 1, 2007, must be approved by the targeted small business
financial assistance board created in this subsection.
b. The targeted small business financial assistance board
shall consist of seven members appointed by the director representing
backgrounds in the areas of finance, insurance, or banking. The
members shall be successful business owners in the private,
for-profit sector. At least one member shall be a member of the
economic development board appointed by the economic development
board. All of the following populations shall be represented
separately by at least one member:
(1) Latino.
(2) African American.
(3) Asian or Pacific Islander.
(4) Caucasian woman.
(5) Native American.
(6) A person with a disability as defined in section 15.102.
c. A person within the third degree of consanguinity of an
employee of the department, a person within the third degree of
consanguinity of a member of the targeted small business financial
assistance board or member's relative, or a business with any
financial ties to a member shall not be eligible for financial
assistance under the program during the employee's employment or the
member's tenure on the board, as applicable. Members shall serve two
year terms and may be reappointed. A member shall not serve more
than two terms.
d. The targeted small business financial assistance board
shall consider all applications for financial assistance under the
program submitted on or after July 1, 2007. Section History: Recent Form
88 Acts, ch 1273, § 9; 89 Acts, ch 83, § 6; 90 Acts, ch 1156, §4;
92 Acts, ch 1244, § 14, 15; 2003 Acts, ch 71, §3; 2007 Acts, ch 207,
§7, 8, 18; 2009 Acts, ch 41, §12; 2009 Acts, ch 133, §7
Referred to in § 15.108