Florida Senate - 2013                                     SB 820
       
       
       
       By Senator Soto
       
       
       
       
       14-00231-13                                            2013820__
    1                        A bill to be entitled                      
    2         An act relating to a small business development fund;
    3         creating s. 288.7045, F.S.; providing definitions;
    4         creating the fund to secure loans from participating
    5         private lending institutions for certain small
    6         businesses; prohibiting a participating private
    7         lending institution from charging a small business
    8         more than a specified rate of interest; specifying a
    9         cap on the loan amount; specifying that half of the
   10         funds be loaned to small businesses and the other half
   11         be loaned to small start-up businesses; specifying the
   12         information that must be contained in the loan
   13         application from the fund; requiring the Department of
   14         Economic Opportunity to select the participating
   15         private lending institutions and the small businesses
   16         and small start-up businesses that qualify for
   17         funding; requiring the department to conduct a one
   18         time public awareness campaign; providing funding;
   19         providing an effective date.
   20  
   21  Be It Enacted by the Legislature of the State of Florida:
   22  
   23         Section 1. Section 288.7045 is created to read:
   24         288.7045 The Florida small business fund.—
   25         (1) As used in this section, the term:
   26         (a) “Fund” means the Florida small business fund.
   27         (c) “Participating private lending institution” means a
   28  private lending institution selected by the department to
   29  participate in an approved venture.
   30         (d) “Small business” means an existing business with an
   31  estimated value of less than $250,000.
   32         (e) “Small start-up business” means a new business that is
   33  started by an individual who has access to less than $50,000 in
   34  capital. However, the individual is not required to access the
   35  capital to qualify for the loan.
   36         (f) “Venture” means a business opportunity presented by the
   37  small business or small start-up business for a loan from the
   38  fund.
   39         (2) The Florida small business fund is created to secure
   40  $50 million in loans by participating private lending
   41  institutions to small businesses and small start-up businesses
   42  by July 1, 2014.
   43         (a) A participating private lending institution may not
   44  charge more than 2 percent interest per annum per loan for any
   45  loan secured by the fund.
   46         (b) Each loan must be less than or equal to $50,000
   47  depending on the demonstrated needs of the venture.
   48         (c) Of all loans secured by the fund, half of the loans
   49  shall be made to small businesses and the other half shall be
   50  made to small start-up businesses.
   51         (d) To initiate the loan process, each small business and
   52  small start-up business shall file an application with the
   53  department, which must contain the following information:
   54         1. The name and address of each natural person who is a
   55  direct or indirect owner;
   56         2. The nature of the business venture, including a
   57  description of the type of new business or expansion, the
   58  business location, the proposed start date, and the anticipated
   59  number of new employees;
   60         3. A statement that the business has a minority business
   61  enterprise or women business enterprise certification; and
   62         4. The amount of the loan requested and a description of
   63  the purpose for the requested amount.
   64         (e) The department shall select:
   65         1. The participating private lending institutions;
   66         2. The small business and small start-up business that
   67  qualify for the fund, after considering:
   68         a. The merits of the venture based upon information
   69  provided in the application; and
   70         b. The economic impact to the state.
   71  
   72  The department may consider a goal of 20 percent participation
   73  by certified minority and women business enterprises.
   74         (f) On or before December 31, 2013, the department may
   75  spend up to $500,000 from the fund to conduct a one-time public
   76  notice campaign to create public awareness of the program.
   77         (7) The department may adopt rules and forms to implement
   78  this section.
   79         Section 2. This act shall take effect July 1, 2013.