Florida Senate - 2011 SB 598
By Senator Siplin
1 A bill to be entitled
2 An act relating to the Black Business Loan Program;
3 amending s. 288.7102, F.S.; revising the
4 recertification and audit periods for eligible
5 recipients of the Black Business Loan Program;
6 authorizing recipients to redress audit findings
7 within a specified period; providing term of funding
8 agreements between recipients and the Office of
9 Tourism, Trade, and Economic Development; revising
10 limits on the use of funds for technical support to
11 black business enterprises and direct administrative
12 costs; providing an effective date.
14 Be It Enacted by the Legislature of the State of Florida:
16 Section 1. Section 288.7102, Florida Statutes, is amended
17 to read:
18 288.7102 Black Business Loan Program.—
19 (1) The Black Business Loan Program is established in the
20 Office of Tourism, Trade, and Economic Development. Under the
21 program, the office shall
annually certify eligible recipients,
22 recertify eligible recipients once every 5 years, and
23 subsequently disburse funds appropriated by the Legislature,
24 through such eligible recipients, to black business enterprises
25 that cannot obtain capital through conventional lending
26 institutions but that could otherwise compete successfully in
27 the private sector.
28 (2) The office shall establish an application and annual
29 certification process for entities seeking funds to participate
30 in providing loans, loan guarantees, or investments in black
31 business enterprises pursuant to the Florida Black Business
32 Investment Act. The office shall process all applications and
33 recertifications submitted by June 1 on or before July 31.
34 (3) If the Black Business Loan Program is appropriated any
35 funding in a fiscal year, the office shall distribute an equal
36 amount of the appropriation, calculated as the total annual
37 appropriation divided by the total number of program recipients
38 certified on or before July 31 of that fiscal year.
39 (4) To be eligible to receive funds and provide loans, loan
40 guarantees, or investments under this section, a recipient must:
41 (a) Be a corporation registered in the state.
42 (b) For an existing recipient, annually submit to the
43 office, together with the recipient’s recertification
44 application, a financial audit performed by an independent
45 certified public account for the recipient’s quinquennial
46 recertification period most recently completed fiscal year,
47 which audit does not reveal any material weaknesses or instances
48 of material noncompliance that the recipient does not
49 substantially redress within 60 days after receipt of the audit
51 (c) For a new recipient:
52 1. Demonstrate that its board of directors includes
53 citizens of the state experienced in the development of black
54 business enterprises.
55 2. Demonstrate that the recipient has a business plan that
56 allows the recipient to operate in a manner consistent with ss.
57 288.707-288.714 and the rules of the office.
58 3. Demonstrate that the recipient has the technical skills
59 to analyze and evaluate applications by black business
60 enterprises for loans, loan guarantees, or investments.
61 4. Demonstrate that the recipient has established viable
62 partnerships with public and private funding sources, economic
63 development agencies, and workforce development and job referral
65 5. Demonstrate that the recipient can provide a private
66 match equal to 20 percent of the amount of funds provided by the
68 (d) For an existing or new recipient, agree to maintain the
69 recipient’s books and records relating to funds received by the
70 office according to generally accepted accounting principles and
71 in accordance with the requirements of s. 215.97(7) and to make
72 those books and records available to the office for inspection
73 upon reasonable notice.
74 (5) Each eligible recipient must meet the provisions of ss.
75 288.707-288.714, the terms of the agreement contract between the
76 recipient and the office, and any other applicable state or
77 federal laws. An entity may not receive funds under ss. 288.707
78 288.714 unless the entity meets annual certification
80 (6) Upon approval by the office and before release of the
81 funds as provided in this section, the office shall issue a
82 letter certifying the applicant as qualified for an award. The
83 office and the applicant shall enter into an agreement that sets
84 forth the conditions for award of the funds. The agreement must
85 include the total amount of funds awarded; the performance
86 conditions that must be met once the funding is has been
87 awarded, including, but not limited to, compliance with all of
88 the requirements of this section for eligible recipients of
89 funds under this section; and sanctions for failure to meet
90 performance conditions, including any provisions to recover
91 awards. The term of the agreement may not exceed 1 year.
92 (7) The office, in consultation with the board, shall adopt
93 rules pursuant to ss. 120.536(1) and 120.54 to implement this
95 (8) A black business investment corporation certified by
96 the office as an eligible recipient under this section is
97 authorized to use funds appropriated for the Black Business Loan
98 Program in any of the following forms:
99 (a) Purchases of stock, preferred or common, voting or
100 nonvoting; however, no more than 40 percent of the funds may be
101 used for direct investments in black business enterprises;
102 (b) Loans or loan guarantees, with or without recourse, in
103 either a subordinated or priority position; or
104 (c) Technical support to black business enterprises , not to
105 exceed 9 percent of the funds received, and direct
106 administrative costs, not to exceed 27 12 percent of the funds
108 (9) It is the intent of the Legislature that if any one
109 type of investment mechanism authorized in subsection (8) is
110 held to be invalid, all other valid mechanisms remain available.
111 (10) All loans, loan guarantees, and investments, and any
112 income related thereto, shall be used to carry out the public
113 purpose of ss. 288.707-288.714, which is to develop black
114 business enterprises. This subsection does not preclude a
115 reasonable profit for the participating black business
116 investment corporation or for return of equity developed to the
117 state and participating financial institutions upon any
118 distribution of the assets or excess income of the investment
120 Section 2. This act shall take effect July 1, 2011.