Florida Senate - 2014                      CS for CS for SB 1480
       
       
        
       By the Committees on Appropriations; and Commerce and Tourism;
       and Senator Benacquisto
       
       
       
       
       576-04198-14                                          20141480c2
    1                        A bill to be entitled                      
    2         An act relating to microfinance; creating Part XIV of
    3         ch. 288, F.S., consisting of ss. 288.993-288.9937,
    4         F.S., relating to microfinance programs; creating s.
    5         288.993, F.S.; providing a short title; creating s.
    6         288.9931, F.S.; providing legislative findings and
    7         intent; creating s. 288.9932, F.S.; defining terms;
    8         creating s. 288.9933, F.S.; authorizing the Department
    9         of Economic Opportunity to adopt rules to implement
   10         this part; creating s. 288.9934, F.S.; establishing
   11         the Microfinance Loan Program; providing a purpose;
   12         defining the term “loan administrator”; requiring the
   13         Department of Economic Opportunity to contract with at
   14         least one entity to administer the program; requiring
   15         the loan administrator to contract with the department
   16         to receive an award of funds; providing other terms
   17         and conditions to receiving funds; specifying fees
   18         authorized to be charged by the department and the
   19         loan administrator; requiring the loan administrator
   20         to remit the microloan principal collected from all
   21         microloans made with state funds received by the loan
   22         administrator; providing for contract termination;
   23         providing for auditing and reporting; requiring
   24         applicants for funds from the Microfinance Loan
   25         Program to meet certain qualifications; requiring the
   26         department to be guided by the 5-year statewide
   27         strategic plan and to advertise and promote the loan
   28         program; requiring the department to perform a study
   29         on methods and best practices to increase the
   30         availability of and access to credit in this state;
   31         prohibiting the pledging of the credit of the state;
   32         authorizing the department to adopt rules; creating s.
   33         288.9935, F.S.; establishing the Microfinance
   34         Guarantee Program; defining the term “lender”;
   35         requiring the department to contract with Enterprise
   36         Florida, Inc., to administer the program; prohibiting
   37         Enterprise Florida, Inc., from guaranteeing certain
   38         loans; requiring borrowers to meet certain conditions
   39         before receiving a loan guarantee; requiring
   40         Enterprise Florida, Inc., to submit an annual report
   41         to the department; prohibiting the pledging of the
   42         credit of the state or Enterprise Florida, Inc.;
   43         creating s. 288.9936, F.S.; requiring the department
   44         to report annually on the Microfinance Loan Program;
   45         requiring the Office of Program Policy Analysis and
   46         Government Accountability to report on the
   47         effectiveness of the State Small Business Credit
   48         Initiative; creating s. 288.9937, F.S.; requiring the
   49         Office of Program Policy Analysis and Government
   50         Accountability to evaluate and report on the
   51         Microfinance Loan Program and the Microfinance
   52         Guarantee Program by a specified date; authorizing the
   53         executive director of the Department of Economic
   54         Opportunity to adopt emergency rules; providing an
   55         appropriation to the Department of Economic
   56         Opportunity; authorizing the Department of Economic
   57         Opportunity and Enterprise Florida, Inc., to spend a
   58         specified amount for marketing and promotional
   59         purposes; authorizing and providing an appropriation
   60         for one full-time equivalent position; providing an
   61         effective date.
   62          
   63  Be It Enacted by the Legislature of the State of Florida:
   64  
   65         Section 1. Part XIV of chapter 288, Florida Statutes,
   66  consisting of ss. 288.993-288.9937, is created and entitled
   67  Microfinance Programs.”
   68         Section 2. Section 288.993, Florida Statutes, is created to
   69  read:
   70         288.993 Short title.—This part may be cited as the “Florida
   71  Microfinance Act.”
   72         Section 3. Section 288.9931, Florida Statutes, is created
   73  to read:
   74         288.9931 Legislative findings and intent.—The Legislature
   75  finds that the ability of entrepreneurs and small businesses to
   76  access capital is vital to the overall health and growth of this
   77  state’s economy; however, access to capital is limited by the
   78  lack of available credit for entrepreneurs and small businesses
   79  in this state. The Legislature further finds that entrepreneurs
   80  and small businesses could be assisted through the creation of a
   81  program that will provide an avenue for entrepreneurs and small
   82  businesses in this state to access credit. Additionally, the
   83  Legislature finds that business management training, business
   84  development training, and technical assistance are necessary to
   85  ensure that entrepreneurs and small businesses that receive
   86  credit develop the skills necessary to grow and achieve long
   87  term financial stability. The Legislature intends to expand job
   88  opportunities for this state’s workforce by expanding access to
   89  credit to entrepreneurs and small businesses. Furthermore, the
   90  Legislature intends to avoid duplicating existing programs and
   91  to coordinate, assist, augment, and improve access to those
   92  programs for entrepreneurs and small businesses in this state.
   93         Section 4. Section 288.9932, Florida Statutes, is created
   94  to read:
   95         288.9932 Definitions.—As used in this part, the term:
   96         (1) “Applicant” means an entrepreneur or small business
   97  that applies to a loan administrator for a microloan.
   98         (2) “Domiciled in this state” means authorized to do
   99  business in this state and located in this state.
  100         (3) “Entrepreneur” means an individual residing in this
  101  state who desires to assume the risk of organizing, managing,
  102  and operating a small business in this state.
  103         (4) “Network” means the Florida Small Business Development
  104  Center Network.
  105         (5) “Small business” means a business, regardless of
  106  corporate structure, domiciled in this state which employs 25 or
  107  fewer people and generated average annual gross revenues of $1.5
  108  million or less per year for the preceding 2 years. For the
  109  purposes of this part, the identity of a small business is not
  110  affected by name changes or changes in personnel.
  111         Section 5. Section 288.9933, Florida Statutes, is created
  112  to read:
  113         288.9933 Rulemaking authority.—The department may adopt
  114  rules to implement this part.
  115         Section 6. Section 288.9934, Florida Statutes, is created
  116  to read:
  117         288.9934Microfinance Loan Program.—
  118         (1) PURPOSE.—The Microfinance Loan Program is established
  119  in the department to make short-term, fixed-rate microloans in
  120  conjunction with business management training, business
  121  development training, and technical assistance to entrepreneurs
  122  and newly established or growing small businesses for start-up
  123  costs, working capital, and the acquisition of materials,
  124  supplies, furniture, fixtures, and equipment. Participation in
  125  the loan program is intended to enable entrepreneurs and small
  126  businesses to access private financing upon completing the loan
  127  program.
  128         (2) DEFINITION.—As used in this section, the term “loan
  129  administrator” means an entity that enters into a contract with
  130  the department pursuant to this section to administer the loan
  131  program.
  132         (3) REQUEST FOR PROPOSAL.—
  133         (a) By December 1, 2014, the department shall contract with
  134  at least one but not more than three entities to administer the
  135  loan program for a term of 3 years. The department shall award
  136  the contract in accordance with the request for proposal
  137  requirements in s. 287.057 to an entity that:
  138         1. Is a corporation registered in this state;
  139         2. Does not offer checking accounts or savings accounts;
  140         3. Demonstrates that its board of directors and managers
  141  are experienced in microlending and small business finance and
  142  development;
  143         4. Demonstrates that it has the technical skills and
  144  sufficient resources and expertise to:
  145         a. Analyze and evaluate applications by entrepreneurs and
  146  small businesses applying for microloans;
  147         b. Underwrite and service microloans provided pursuant to
  148  this part; and
  149         c. Coordinate the provision of such business management
  150  training, business development training, and technical
  151  assistance as required by this part.
  152         5. Demonstrates that it has established viable, existing
  153  partnerships with public and private nonstate funding sources,
  154  economic development agencies, and workforce development and job
  155  referral networks; and
  156         6. Demonstrates that it has a plan that includes proposed
  157  microlending activities under the loan program, including, but
  158  not limited to, the types of entrepreneurs and businesses to be
  159  assisted and the size and range of loans the loan administrator
  160  intends to make.
  161         (b) To ensure that prospective loan administrators meet the
  162  requirements of subparagraphs (a)2.-6., the request for proposal
  163  must require submission of the following information:
  164         1. A description of the types of entrepreneurs and small
  165  businesses the loan administrator has assisted in the past, and
  166  the average size and terms of loans made in the past to such
  167  entities;
  168         2. A description of the experience of members of the board
  169  of directors and managers in the areas of microlending and small
  170  business finance and development;
  171         3. A description of the loan administrator’s underwriting
  172  and credit policies and procedures, credit decisionmaking
  173  process, monitoring policies and procedures, and collection
  174  practices, and samples of any currently used loan documentation;
  175         4. A description of the nonstate funding sources that will
  176  be used by the loan administrator in conjunction with the state
  177  funds to make microloans pursuant to this section;
  178         5. The loan administrator’s three most recent financial
  179  audits or, if no prior audits have been completed, the loan
  180  administrator’s three most recent unaudited financial
  181  statements; and
  182         6. A conflict of interest statement from the loan
  183  administrator’s board of directors certifying that a board
  184  member, employee, or agent, or an immediate family member
  185  thereof, or any other person connected to or affiliated with the
  186  loan administrator, is not receiving or will not receive any
  187  type of compensation or remuneration from an entrepreneur or
  188  small business that has received or will receive funds from the
  189  loan program. The department may waive this requirement for good
  190  cause shown. As used in this subparagraph, the term “immediate
  191  family” means a parent, child, or spouse, or any other relative
  192  by blood, marriage, or adoption, of a board member, employee, or
  193  agent of the loan administrator.
  194         (4) CONTRACT AND AWARD OF FUNDS.—
  195         (a) The selected loan administrator must enter into a
  196  contract with the department for a term of 3 years to receive
  197  state funds for the loan program. Funds appropriated to the
  198  program must be reinvested and maintained as a long-term and
  199  stable source of funding for the program. The amount of state
  200  funds used in any microloan made pursuant to this part may not
  201  exceed 50 percent of the total microloan amount. The department
  202  shall establish financial performance measures and objectives
  203  for the loan program and for the loan administrator in order to
  204  maximize the state funds awarded.
  205         (b) State funds may be used only to provide direct
  206  microloans to entrepreneurs and small businesses according to
  207  the limitations, terms, and conditions provided in this part.
  208  Except as provided in subsection (5), state funds may not be
  209  used to pay administrative costs, underwriting costs, servicing
  210  costs, or any other costs associated with providing microloans,
  211  business management training, business development training, or
  212  technical assistance.
  213         (c) The loan administrator shall reserve 10 percent of the
  214  total award amount from the department to provide microloans
  215  pursuant to this part to entrepreneurs and small businesses that
  216  employ no more than five people and generate annual gross
  217  revenues averaging no more than $250,000 per year for the last 2
  218  years.
  219         (d)1. If the loan program is appropriated funding in a
  220  fiscal year, the department shall distribute such funds to the
  221  loan administrator within 30 days of the execution of the
  222  contract by the department and the loan administrator.
  223         2. The total amount of funding allocated to the loan
  224  administrator in a fiscal year may not exceed the amount
  225  appropriated for the loan program in the same fiscal year. If
  226  the funds appropriated to the loan program in a fiscal year
  227  exceed the amount of state funds received by the loan
  228  administrator, such excess funds shall revert to the General
  229  Revenue Fund.
  230         (e) Within 30 days of executing its contract with the
  231  department, the loan administrator must enter into a memorandum
  232  of understanding with the network:
  233         1. For the provision of business management training,
  234  business development training, and technical assistance to
  235  entrepreneurs and small businesses that receive microloans under
  236  this part; and
  237         2. To promote the program to underserved entrepreneurs and
  238  small businesses.
  239         (f) By September 1, 2014, the department shall review
  240  industry best practices and determine the minimum business
  241  management training, business development training, and
  242  technical assistance that must be provided by the network to
  243  achieve the goals of this part.
  244         (g) The loan administrator must meet the requirements of
  245  this section, the terms of its contract with the department, and
  246  any other applicable state or federal laws to be eligible to
  247  receive funds in any fiscal year. The contract with the loan
  248  administrator must specify any sanctions for the loan
  249  administrator’s failure to comply with the contract or this
  250  part.
  251         (5) FEES.—
  252         (a) Except as provided in this section, the department may
  253  not charge fees or interest or require collateral from the loan
  254  administrator. The department may charge an annual fee or
  255  interest of up to 80 percent of the Federal Funds Rate as of the
  256  date specified in the contract for state funds received under
  257  the loan program. The department shall require as collateral an
  258  assignment of the notes receivable of the microloans made by the
  259  loan administrator under the loan program.
  260         (b) The loan administrator is entitled to retain a one-time
  261  administrative servicing fee of 1 percent of the total award
  262  amount to offset the administrative costs of underwriting and
  263  servicing microloans made pursuant to this part. This fee may
  264  not be charged to or paid by microloan borrowers participating
  265  in the loan program. Except as provided in subsection (7)(c),
  266  the loan administrator may not be required to return this fee to
  267  the department.
  268         (c) The loan administrator may not charge interest, fees,
  269  or costs except as authorized in subsection (9).
  270         (d) Except as provided in subsection (7), the loan
  271  administrator is not required to return the interest, fees, or
  272  costs authorized under subsection (9).
  273         (6) REPAYMENT OF AWARD FUNDS.—
  274         (a) After collecting interest and any fees or costs
  275  permitted under this section in satisfaction of all microloans
  276  made pursuant to this part, the loan administrator shall remit
  277  to the department the microloan principal collected from all
  278  microloans made with state funds received under this part.
  279  Repayment of microloan principal to the department may be
  280  deferred by the department for a period not to exceed 6 months;
  281  however, the loan administrator may not provide a microloan
  282  under this part after the contract with the department expires.
  283         (b) If for any reason the loan administrator is unable to
  284  make repayments to the department in accordance with the
  285  contract, the department may accelerate maturity of the state
  286  funds awarded and demand repayment in full. In this event, or if
  287  a loan administrator violates this part or the terms of its
  288  contract, the loan administrator shall surrender to the
  289  department possession of all collateral required pursuant to
  290  subsection (5). Any loss or deficiency greater than the value of
  291  the collateral may be recovered by the department from the loan
  292  administrator.
  293         (c) In the event of a default as specified in the contract,
  294  termination of the contract, or violation of this section, the
  295  state may, in addition to any other remedy provided by law,
  296  bring suit to enforce its interest.
  297         (d) A microloan borrower’s default does not relieve the
  298  loan administrator of its obligation to repay an award to the
  299  department.
  300         (7) CONTRACT TERMINATION.—
  301         (a) The loan administrator’s contract with the department
  302  may be terminated by the department, and the loan administrator
  303  required to immediately return all state funds awarded,
  304  including any interest, fees, and costs it would otherwise be
  305  entitled to retain pursuant to subsection (5) for that fiscal
  306  year, upon a finding by the department that:
  307         1. The loan administrator has, within the previous 5 years,
  308  participated in a state-funded economic development program in
  309  this or any other state and was found to have failed to comply
  310  with the requirements of that program;
  311         2. The loan administrator is currently in material
  312  noncompliance with any statute, rule, or program administered by
  313  the department;
  314         3. The loan administrator or any member of its board of
  315  directors, officers, partners, managers, or shareholders has
  316  pled no contest or been found guilty, regardless of whether
  317  adjudication was withheld, of any felony or any misdemeanor
  318  involving fraud, misrepresentation, or dishonesty;
  319         4. The loan administrator failed to meet or agree to the
  320  terms of the contract with the department or failed to meet this
  321  part; or
  322         5. The department finds that the loan administrator
  323  provided fraudulent or misleading information to the department.
  324         (b) The loan administrator’s contract with the department
  325  may be terminated by the department at any time for any reason
  326  upon 30 days’ notice by the department. In such a circumstance,
  327  the loan administrator shall return all awarded state funds to
  328  the department within 60 days of the termination. However, the
  329  loan administrator may retain any interest, fees, or costs it
  330  has collected pursuant to subsection (5).
  331         (c) The loan administrator’s contract with the department
  332  may be terminated by the loan administrator at any time for any
  333  reason upon 30 days’ notice by the loan administrator. In such a
  334  circumstance, the loan administrator shall return all awarded
  335  state funds to the department, including any interest, fees, and
  336  costs it has retained or would otherwise be entitled to retain
  337  pursuant to subsection (5), within 30 days of the termination.
  338         (8) AUDITS AND REPORTING.—
  339         (a) The loan administrator shall annually submit to the
  340  department a financial audit performed by an independent
  341  certified public accountant and an operational performance audit
  342  for the most recently completed fiscal year. Both audits must
  343  indicate whether any material weakness or instances of material
  344  noncompliance are indicated in the audit.
  345         (b) The loan administrator shall submit quarterly reports
  346  to the department as required by s. 288.9936(3).
  347         (c) The loan administrator shall make its books and records
  348  related to the loan program available to the department or its
  349  designee for inspection upon reasonable notice.
  350         (9) ELIGIBILITY AND APPLICATION.—
  351         (a) To be eligible for a microloan, an applicant must, at a
  352  minimum, be an entrepreneur or small business located in this
  353  state.
  354         (b) Microloans may not be made if the direct or indirect
  355  purpose or result of granting the microloan would be to:
  356         1. Pay off any creditors of the applicant, including the
  357  refund of a debt owed to a small business investment company
  358  organized pursuant to 15 U.S.C. s. 681;
  359         2. Provide funds, directly or indirectly, for payment,
  360  distribution, or as a microloan to owners, partners, or
  361  shareholders of the applicant’s business, except as ordinary
  362  compensation for services rendered;
  363         3. Finance the acquisition, construction, improvement, or
  364  operation of real property which is, or will be, held primarily
  365  for sale or investment;
  366         4. Pay for lobbying activities; or
  367         5. Replenish funds used for any of the purposes specified
  368  in subparagraphs 1.-4.
  369         (c) A microloan applicant shall submit a written
  370  application in the format prescribed by the loan administrator
  371  and shall pay an application fee not to exceed $50 to the loan
  372  administrator.
  373         (d) The following minimum terms apply to a microloan made
  374  by the loan administrator:
  375         1.The amount of a microloan may not exceed $50,000;
  376         2. A borrower may not receive more than $75,000 per year in
  377  total microloans;
  378         3. A borrower may not receive more than two microloans per
  379  year and may not receive more than five microloans in any 3-year
  380  period;
  381         4. The proceeds of the microloan may be used only for
  382  startup costs, working capital, and the acquisition of
  383  materials, supplies, furniture, fixtures, and equipment;
  384         5. The period of any microloan may not exceed 1 year;
  385         6. The interest rate may not exceed the prime rate
  386  published in the Wall Street Journal as of the date specified in
  387  the microloan, plus 1000 basis points;
  388         7. All microloans must be personally guaranteed;
  389         8. The borrower must participate in business management
  390  training, business development training, and technical
  391  assistance as determined by the loan administrator in the
  392  microloan agreement;
  393         9. The borrower shall provide such information as required
  394  by the loan administrator, including monthly job creation and
  395  financial data, in the manner prescribed by the loan
  396  administrator; and
  397         10. The loan administrator may collect fees for late
  398  payments which are consistent with standard business lending
  399  practices and may recover costs and fees incurred for any
  400  collection efforts necessitated by a borrower’s default.
  401         (e) The department may not review microloans made by the
  402  loan administrator pursuant to this part before approval of the
  403  loan by the loan administrator.
  404         (10) STATEWIDE STRATEGIC PLAN.—In implementing this
  405  section, the department shall be guided by the 5-year statewide
  406  strategic plan adopted pursuant to s. 20.60(5). The department
  407  shall promote and advertise the loan program by, among other
  408  things, cooperating with government, nonprofit, and private
  409  industry to organize, host, or participate in seminars and other
  410  forums for entrepreneurs and small businesses.
  411         (11) STUDY.—By December 31, 2014, the department shall
  412  commence or commission a study to identify methods and best
  413  practices that will increase access to credit to entrepreneurs
  414  and small businesses in this state. The study must also explore
  415  the ability of, and limitations on, Florida nonprofit
  416  organizations and private financial institutions to expand
  417  access to credit to entrepreneurs and small businesses in this
  418  state.
  419         (12) CREDIT OF THE STATE.—With the exception of funds
  420  appropriated to the loan program by the Legislature, the credit
  421  of the state may not be pledged. The state is not liable or
  422  obligated in any way for claims on the loan program or against
  423  the loan administrator or the department.
  424         Section 7. Section 288.9935, Florida Statutes, is created
  425  to read:
  426         288.9935Microfinance Guarantee Program.—
  427         (1) The Microfinance Guarantee Program is established in
  428  the department. The purpose of the program is to stimulate
  429  access to credit for entrepreneurs and small businesses in this
  430  state by providing targeted guarantees to loans made to such
  431  entrepreneurs and small businesses. Funds appropriated to the
  432  program must be reinvested and maintained as a long-term and
  433  stable source of funding for the program.
  434         (2) As used in this section, the term “lender” means a
  435  financial institution as defined in s. 655.005.
  436         (3) The department must enter into a contract with
  437  Enterprise Florida, Inc., to administer the Microfinance
  438  Guarantee Program. In administering the program, Enterprise
  439  Florida, Inc., must, at a minimum:
  440         (a) Establish lender and borrower eligibility requirements
  441  in addition to those provided in this section;
  442         (b) Determine a reasonable leverage ratio of loan amounts
  443  guaranteed to state funds; however, the leverage ratio may not
  444  exceed 3 to 1;
  445         (c) Establish reasonable fees and interest;
  446         (d) Promote the program to financial institutions that
  447  provide loans to entrepreneurs and small businesses in order to
  448  maximize the number of lenders throughout the state which
  449  participate in the program;
  450         (e) Enter into a memorandum of understanding with the
  451  network to promote the program to underserved entrepreneurs and
  452  small businesses;
  453         (f) Establish limits on the total amount of loan guarantees
  454  a single lender can receive;
  455         (g) Establish an average loan guarantee amount for loans
  456  guaranteed under this section;
  457         (h) Establish a risk-sharing strategy to be employed in the
  458  event of a loan failure; and
  459         (i) Establish financial performance measures and objectives
  460  for the program in order to maximize the state funds.
  461         (4) Enterprise Florida, Inc., is limited to providing loan
  462  guarantees for loans with total loan amounts of at least $50,000
  463  and not more than $250,000. A loan guarantee may not exceed 50
  464  percent of the total loan amount.
  465         (5) Enterprise Florida, Inc., may not guarantee a loan if
  466  the direct or indirect purpose or result of the loan would be
  467  to:
  468         (a) Pay off any creditors of the applicant, including the
  469  refund of a debt owed to a small business investment company
  470  organized pursuant to 15 U.S.C. s. 681;
  471         (b) Provide funds, directly or indirectly, for payment,
  472  distribution, or as a loan to owners, partners, or shareholders
  473  of the applicant’s business, except as ordinary compensation for
  474  services rendered;
  475         (c) Finance the acquisition, construction, improvement, or
  476  operation of real property which is, or will be, held primarily
  477  for sale or investment;
  478         (d) Pay for lobbying activities; or
  479         (e) Replenish funds used for any of the purposes specified
  480  in paragraphs (a) through (d).
  481         (6) Enterprise Florida, Inc., may not use funds
  482  appropriated from the state for costs associated with
  483  administering the guarantee program.
  484         (7) To be eligible to receive a loan guarantee under the
  485  Microfinance Guarantee Program, a borrower must, at a minimum:
  486         (a) Be an entrepreneur or small business located in this
  487  state;
  488         (b) Employ 25 or fewer people;
  489         (c) Generate average annual gross revenues of $1.5 million
  490  or less per year for the last 2 years; and
  491         (d) Meet any additional requirements established by
  492  Enterprise Florida, Inc.
  493         (8) By October 1 of each year, Enterprise Florida, Inc.,
  494  shall submit a complete and detailed annual report to the
  495  department for inclusion in the department’s report required
  496  under s. 20.60(10). The report must, at a minimum, provide:
  497         (a) A comprehensive description of the program, including
  498  an evaluation of its application and guarantee activities,
  499  recommendations for change, and identification of any other
  500  state programs that overlap with the program;
  501         (b) An assessment of the current availability of and access
  502  to credit for entrepreneurs and small businesses in this state;
  503         (c) A summary of the financial and employment results of
  504  the entrepreneurs and small businesses receiving loan
  505  guarantees, including the number of full-time equivalent jobs
  506  created as a result of the guaranteed loans and the amount of
  507  wages paid to employees in the newly created jobs;
  508         (d) Industry data about the borrowers, including the six
  509  digit North American Industry Classification System (NAICS)
  510  code;
  511         (e) The name and location of lenders that receive loan
  512  guarantees;
  513         (f) The amount of state funds received by Enterprise
  514  Florida, Inc.;
  515         (g) The number of loan guarantee applications received;
  516         (h) The number, duration, location, and amount of
  517  guarantees made;
  518         (i) The number and amount of guaranteed loans outstanding,
  519  if any;
  520         (j) The number and amount of guaranteed loans with payments
  521  overdue, if any;
  522         (k) The number and amount of guaranteed loans in default,
  523  if any;
  524         (l) The repayment history of the guaranteed loans made; and
  525         (m) An evaluation of the program’s ability to meet the
  526  financial performance measures and objectives specified in
  527  subsection (3).
  528         (9) The credit of the state or Enterprise Florida, Inc.,
  529  may not be pledged except for funds appropriated by law to the
  530  Microfinance Guarantee Program. The state is not liable or
  531  obligated in any way for claims on the program or against
  532  Enterprise Florida, Inc., or the department.
  533         Section 8. Section 288.9936, Florida Statutes, is created
  534  to read:
  535         288.9936Annual report of the Microfinance Loan Program.—
  536         (1)The department shall include in the report required by
  537  s. 20.60(10) a complete and detailed annual report on the
  538  Microfinance Loan Program. The report must include:
  539         (a) A comprehensive description of the program, including
  540  an evaluation of its application and funding activities,
  541  recommendations for change, and identification of any other
  542  state programs that overlap with the program;
  543         (b) The financial institutions and the public and private
  544  organizations and individuals participating in the program;
  545         (c) An assessment of the current availability of and access
  546  to credit for entrepreneurs and small businesses in this state;
  547         (d) A summary of the financial and employment results of
  548  the entities receiving microloans;
  549         (e) The number of full-time equivalent jobs created as a
  550  result of the microloans and the amount of wages paid to
  551  employees in the newly created jobs;
  552         (f) The number and location of prospective loan
  553  administrators that responded to the department request for
  554  proposals;
  555         (g) The amount of state funds received by the loan
  556  administrator;
  557         (h) The number of microloan applications received by the
  558  loan administrator;
  559         (i) The number, duration, and location of microloans made
  560  by the loan administrator, including the aggregate number of
  561  microloans made to minority business enterprises if available;
  562         (j) The number and amount of microloans outstanding, if
  563  any;
  564         (k) The number and amount of microloans with payments
  565  overdue, if any;
  566         (l) The number and amount of microloans in default, if any;
  567         (m) The repayment history of the microloans made;
  568         (n) The repayment history and performance of funding
  569  awards;
  570         (o) An evaluation of the program’s ability to meet the
  571  financial performance measures and objectives specified in s.
  572  288.9934; and
  573         (p) A description and evaluation of the technical
  574  assistance and business management and development training
  575  provided by the network pursuant to its memorandum of
  576  understanding with the loan administrator.
  577         (2) The department shall submit the report provided to the
  578  department from Enterprise Florida, Inc., pursuant to
  579  288.9935(7) for inclusion in the department’s annual report
  580  required under s. 20.60(10).
  581         (3) The department shall require at least quarterly reports
  582  from the loan administrator. The loan administrator’s report
  583  must include, at a minimum, the number of microloan applications
  584  received, the number of microloans made, the amount and interest
  585  rate of each microloan made, the amount of technical assistance
  586  or business development and management training provided, the
  587  number of full-time equivalent jobs created as a result of the
  588  microloans, the amount of wages paid to employees in the newly
  589  created jobs, the six-digit North American Industry
  590  Classification System (NAICS) code associated with the
  591  borrower’s business, and the borrower’s locations.
  592         (4) The Office of Program Policy Analysis and Government
  593  Accountability shall conduct a study to evaluate the
  594  effectiveness and return on investment of the State Small
  595  Business Credit Initiative operated in this state pursuant to 12
  596  U.S.C. ss. 5701 et seq. The office shall submit a report to the
  597  President of the Senate and the Speaker of the House of
  598  Representatives by January 1, 2015.
  599         Section 9. Section 288.9937, Florida Statutes, is created
  600  to read:
  601         288.9937Evaluation of programs.—The Office of Program
  602  Policy Analysis and Government Accountability shall analyze,
  603  evaluate, and determine the economic benefits, as defined in s.
  604  288.005, of the first 3 years of the Microfinance Loan Program
  605  and the Microfinance Guarantee Program. The analysis must also
  606  evaluate the number of jobs created, the increase or decrease in
  607  personal income, and the impact on state gross domestic product
  608  from the direct, indirect, and induced effects of the state’s
  609  investment. The analysis must also identify any inefficiencies
  610  in the programs and provide recommendations for changes to the
  611  programs. The office shall submit a report to the President of
  612  the Senate and the Speaker of the House of Representatives by
  613  January 1, 2018. This section expires January 31, 2018.
  614         Section 10. (1) The executive director of the Department of
  615  Economic Opportunity is authorized, and all conditions are
  616  deemed to be met, to adopt emergency rules pursuant to ss.
  617  120.536(1) and 120.54(4), Florida Statutes, for the purpose of
  618  implementing this act.
  619         (2) Notwithstanding any other provision of law, the
  620  emergency rules adopted pursuant to subsection (1) remain in
  621  effect for 6 months after adoption and may be renewed during the
  622  pendency of procedures to adopt permanent rules addressing the
  623  subject of the emergency rules.
  624         (3) This section shall expire October 1, 2015.
  625         Section 11. For the 2014-2015 fiscal year, the sum of $10
  626  million in nonrecurring funds from the General Revenue Fund is
  627  appropriated to the Department of Economic Opportunity to
  628  implement this act. From these nonrecurring funds, the
  629  Department of Economic Opportunity and Enterprise Florida, Inc.,
  630  may spend up to $100,000 to market and promote the programs
  631  created in this act. For the 2014-2015 fiscal year, one full
  632  time equivalent position is authorized with 55,000 of salary
  633  rate, and $64,759 of recurring funds and $3,018 of nonrecurring
  634  funds from the State Economic Enhancement and Development Trust
  635  Fund, $12,931 of recurring funds and $604 of nonrecurring funds
  636  from the Tourism Promotional Trust Fund, and $3,233 of recurring
  637  funds and $151 of nonrecurring funds from the Florida
  638  International Trade and Promotion Trust Fund are appropriated to
  639  the Department of Economic Opportunity to implement this act.
  640         Section 12. This act shall take effect July 1, 2014.