Florida Senate - 2015                                    SB 1090
       By Senator Soto
       14-00246A-15                                          20151090__
    1                        A bill to be entitled                      
    2         An act relating to economic incentives for small
    3         technology companies; amending s. 288.9931, F.S.;
    4         conforming provisions to changes made by the act;
    5         amending s. 288.9932, F.S.; defining the term “small
    6         technology company”; amending s. 288.9935, F.S.;
    7         authorizing the provision of loans to small technology
    8         companies through the Microfinance Guarantee Program;
    9         defining the term “applicant”; conforming provisions
   10         to changes made by the act; providing an
   11         appropriation; providing an effective date.
   13  Be It Enacted by the Legislature of the State of Florida:
   15         Section 1. Section 288.9931, Florida Statutes, is amended
   16  to read:
   17         288.9931 Legislative findings and intent.—The Legislature
   18  finds that the ability of entrepreneurs, and small businesses,
   19  and small technology companies to access capital is vital to the
   20  overall health and growth of this state’s economy; however,
   21  access to capital is limited by the lack of available credit for
   22  such entrepreneurs and small businesses in this state. The
   23  Legislature further finds that entrepreneurs, and small
   24  businesses, and small technology companies could be assisted
   25  through the creation of a program that will provide an avenue
   26  for entrepreneurs and small businesses in this state to access
   27  credit. Additionally, the Legislature finds that business
   28  management training, business development training, and
   29  technical assistance are necessary to ensure that entrepreneurs,
   30  and small businesses, and small technology companies that
   31  receive credit develop the skills necessary to grow and achieve
   32  long-term financial stability. The Legislature intends to expand
   33  job opportunities for this state’s workforce by expanding access
   34  to credit to entrepreneurs, and small businesses, and small
   35  technology companies. Furthermore, the Legislature intends to
   36  avoid duplicating existing programs and to coordinate, assist,
   37  augment, and improve access to those programs for entrepreneurs,
   38  and small businesses, and small technology companies in this
   39  state.
   40         Section 2. Subsection (6) is added to section 288.9932,
   41  Florida Statutes, to read:
   42         288.9932 Definitions.—As used in this part, the term:
   43         (6) “Small technology company” means a business that:
   44         (a) Is authorized to do business in this state and has its
   45  principal place of business located in this state.
   46         (b) Generated annual gross revenues of $250,000 or less per
   47  year for the preceding 2 years.
   48         (c) Has a net worth less than $1 million.
   49         (d) Primarily engages in business activities in the sectors
   50  of solar energy, biotechnology, biofuel, commercial space
   51  flight, or in the production of simulation software or sensors.
   52         Section 3. Subsections (1), (2), (3), (7), and (8) of
   53  section 288.9935, Florida Statutes, are amended to read:
   54         288.9935 Microfinance Guarantee Program.—
   55         (1) The Microfinance Guarantee Program is established in
   56  the department. The purpose of the program is to stimulate
   57  access to credit for entrepreneurs, and small businesses, and
   58  small technology companies in this state by providing targeted
   59  guarantees to loans made to such entrepreneurs and small
   60  businesses. Funds appropriated to the program must be reinvested
   61  and maintained as a long-term and stable source of funding for
   62  the program.
   63         (2) As used in this section, the term:
   64         (a) “Applicant” has the meaning provided in s. 288.9932,
   65  and also includes a small technology company.
   66         (b) “Lender” means a financial institution as defined in s.
   67  655.005.
   68         (3) The department must enter into a contract with
   69  Enterprise Florida, Inc., to administer the Microfinance
   70  Guarantee Program. In administering the program, Enterprise
   71  Florida, Inc., must, at a minimum:
   72         (a) Establish lender and borrower eligibility requirements
   73  in addition to those provided in this section.;
   74         (b) Determine a reasonable leverage ratio of loan amounts
   75  guaranteed to state funds; however, the leverage ratio may not
   76  exceed 3 to 1.;
   77         (c) Establish reasonable fees and interest.;
   78         (d) Promote the program to financial institutions that
   79  provide loans to entrepreneurs, and small businesses, and small
   80  technology companies in order to maximize the number of lenders
   81  throughout the state which participate in the program.;
   82         (e) Enter into a memorandum of understanding with the
   83  network to promote the program to underserved entrepreneurs, and
   84  small businesses, and small technology companies.;
   85         (f) Establish limits on the total amount of loan guarantees
   86  a single lender can receive.;
   87         (g) Establish an average loan guarantee amount for loans
   88  guaranteed under this section.;
   89         (h) Establish a risk-sharing strategy to be employed in the
   90  event of a loan failure.; and
   91         (i) Establish financial performance measures and objectives
   92  for the program in order to maximize the state funds.
   93         (7) To be eligible to receive a loan guarantee under the
   94  Microfinance Guarantee Program, a borrower must, at a minimum:
   95         (a) Be an entrepreneur or small business located in this
   96  state that employs;
   97         (b) Employ 25 or fewer people; and generates
   98         (c) Generate average annual gross revenues of $1.5 million
   99  or less per year for the last 2 years or be a small technology
  100  company.; and
  101         (b)(d) Meet any additional requirements established by
  102  Enterprise Florida, Inc.
  103         (8) By October 1 of each year, Enterprise Florida, Inc.,
  104  shall submit a complete and detailed annual report to the
  105  department for inclusion in the department’s report required
  106  under s. 20.60(10). The report must, at a minimum, provide:
  107         (a) A comprehensive description of the program, including
  108  an evaluation of its application and guarantee activities,
  109  recommendations for change, and identification of any other
  110  state programs that overlap with the program.;
  111         (b) An assessment of the current availability of and access
  112  to credit for entrepreneurs, and small businesses, and small
  113  technology companies in this state.;
  114         (c) A summary of the financial and employment results of
  115  the entrepreneurs, and small businesses, and small technology
  116  companies receiving loan guarantees, including the number of
  117  full-time equivalent jobs created as a result of the guaranteed
  118  loans and the amount of wages paid to employees in the newly
  119  created jobs.;
  120         (d) Industry data about the borrowers, including the six
  121  digit North American Industry Classification System (NAICS)
  122  code.;
  123         (e) The name and location of lenders that receive loan
  124  guarantees.;
  125         (f) The amount of state funds received by Enterprise
  126  Florida, Inc.;
  127         (g) The number of loan guarantee applications received.;
  128         (h) The number, duration, location, and amount of
  129  guarantees made.;
  130         (i) The number and amount of guaranteed loans outstanding,
  131  if any.;
  132         (j) The number and amount of guaranteed loans with payments
  133  overdue, if any.;
  134         (k) The number and amount of guaranteed loans in default,
  135  if any.;
  136         (l) The repayment history of the guaranteed loans made.;
  137  and
  138         (m) An evaluation of the program’s ability to meet the
  139  financial performance measures and objectives specified in
  140  subsection (3).
  141         Section 4. For the 2015-2016 fiscal year, the sum of $50
  142  million in nonrecurring funds from the General Revenue Fund is
  143  appropriated to the Department of Economic Opportunity to be
  144  used exclusively for the purpose of guaranteeing loans for small
  145  technology companies under s. 288.9935, Florida Statutes.
  146         Section 5. This act shall take effect July 1, 2015.