Florida Senate - 2014 SB 1480 By Senator Benacquisto 30-01521A-14 20141480__ 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 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 “lender”; requiring the Department 13 of Economic Opportunity to contract with at least one 14 entity to administer the program; requiring the lender 15 to contract with the department to receive an award of 16 funds; providing other terms and conditions to 17 receiving funds; specifying fees authorized to be 18 charged by the department and the lender; requiring 19 the lender to remit the microloan principal collected 20 from all microloans made with funds awarded to the 21 lender; providing for contract termination; providing 22 for auditing and reporting; requiring applicants for 23 funds from the Microfinance Loan Program to meet 24 certain qualifications; requiring the department to be 25 guided by the 5-year statewide strategic plan and to 26 advertise and promote the loan program; requiring the 27 department to perform a study on methods and best 28 practices to increase the availability of and access 29 to credit in this state; prohibiting the pledging of 30 the credit of the state; authorizing the department to 31 adopt rules; creating s. 288.9935, F.S.; establishing 32 the Microfinance Guarantee Program; defining the term 33 “lender”; requiring the department to contract with 34 Enterprise Florida, Inc., to administer the program; 35 prohibiting Enterprise Florida, Inc., from 36 guaranteeing certain loans; requiring borrowers to 37 meet certain conditions before receiving a loan 38 guarantee; requiring Enterprise Florida, Inc., to 39 submit an annual report to the department; prohibiting 40 the pledging of the credit of the state or Enterprise 41 Florida, Inc.; creating s. 288.9936, F.S.; requiring 42 the department to report annually on the Microfinance 43 Loan Program; requiring the Office of Program Policy 44 Analysis and Government Accountability to report on 45 the effectiveness of the State Small Business Credit 46 Initiative; creating s. 288.9937, F.S.; requiring the 47 Office of Program Policy Analysis and Government 48 Accountability to evaluate and report on the 49 Microfinance Loan Program and the Microfinance 50 Guarantee Program by a specified date; authorizing the 51 executive director of the Department of Economic 52 Opportunity to adopt emergency rules; providing an 53 effective date. 54 55 Be It Enacted by the Legislature of the State of Florida: 56 57 Section 1. Part XIV of ch. 288, Florida Statutes, 58 consisting of ss. 288.993-288.9937, is created and entitled 59 “Microfinance Programs.” 60 Section 2. Section 288.993, Florida Statutes, is created to 61 read: 62 288.993 Short title.—This part may be cited as the “Florida 63 Microfinance Act.” 64 Section 3. Section 288.9931, Florida Statutes, is created 65 to read: 66 288.9931 Legislative findings and intent.—The Legislature 67 finds that the ability of entrepreneurs and small businesses to 68 access capital is vital to the overall health and growth of this 69 state’s economy; however, access to capital is limited by the 70 lack of available credit for entrepreneurs and small businesses 71 in this state. The Legislature further finds that entrepreneurs 72 and small businesses could be assisted through the creation of a 73 program that will provide an avenue for entrepreneurs and small 74 businesses in this state to access credit. Additionally, the 75 Legislature finds that business management training, business 76 development training, and technical assistance are necessary to 77 ensure that entrepreneurs and small businesses that receive 78 credit develop the skills necessary to grow and achieve long 79 term financial stability. The Legislature intends to expand job 80 opportunities for this state’s workforce by expanding access to 81 credit to entrepreneurs and small businesses. Furthermore, the 82 Legislature intends to avoid duplicating existing programs and 83 to coordinate, assist, augment, and improve access to those 84 programs for entrepreneurs and small businesses in this state. 85 Section 4. Section 288.9932, Florida Statutes, is created 86 to read: 87 288.9932 Definitions.—As used in this part, the term: 88 (1) “Applicant” means an entrepreneur or small business 89 requesting the assistance of a lender for services through the 90 microloan program. 91 (2) “Domiciled in this state” means authorized to do 92 business in this state and located in this state. 93 (3) “Entrepreneur” means an individual residing in this 94 state who desires to assume the risk of organizing, managing, 95 and operating a small business in this state. 96 (4) “Network” means the Florida Small Business Development 97 Center Network. 98 (5) “Small business” means a business, regardless of 99 corporate structure, domiciled in this state which employs 25 or 100 fewer people and generated average annual gross revenues of $1.5 101 million or less per year for the preceding 2 years. For the 102 purposes of this part, the identity of a small business is not 103 affected by name changes or changes in personnel. 104 Section 5. Section 288.9933, Florida Statutes, is created 105 to read: 106 288.9933 Rulemaking authority.—The department may adopt 107 rules to implement this part. 108 Section 6. Section 288.9934, Florida Statutes, is created 109 to read: 110 288.9934 Microfinance Loan Program.— 111 (1) PURPOSE.—The Microfinance Loan Program is established 112 in the department to make short-term, fixed-rate microloans in 113 conjunction with business management training, business 114 development training, and technical assistance to entrepreneurs 115 and newly established or growing small businesses for start-up 116 costs, working capital, and the acquisition of materials, 117 supplies, furniture, fixtures, and equipment. Participation in 118 the loan program is intended to enable entrepreneurs and small 119 businesses to access private financing upon completing the loan 120 program. 121 (2) DEFINITION.—As used in this section, the term “lender” 122 means an entity that enters into a contract with the department 123 pursuant to this section to administer the loan program. 124 (3) REQUEST FOR PROPOSAL.— 125 (a) By December 1, 2014, the department shall contract with 126 at least one but not more than three entities to administer the 127 loan program for a term of 3 years. The department shall award 128 the contract in accordance with the request for proposal 129 requirements in s. 287.057 to an entity that: 130 1. Is a corporation registered in this state; 131 2. Does not offer checking accounts or savings accounts; 132 3. Demonstrates that its board of directors and managers 133 are experienced in microlending and small business finance and 134 development; 135 4. Demonstrates that it has the technical skills and 136 sufficient resources and expertise to: 137 a. Analyze and evaluate applications by entrepreneurs and 138 small businesses applying for microloans; 139 b. Underwrite and service microloans provided pursuant to 140 this part; and 141 c. Coordinate the provision of such business management 142 training, business development training, and technical 143 assistance as required by this part. 144 5. Demonstrates that it has established viable, existing 145 partnerships with public and private, nonstate funding sources, 146 economic development agencies, and workforce development and job 147 referral networks; and 148 6. Demonstrates that it has a plan that includes proposed 149 microlending activities under the loan program, including, but 150 not limited to, the types of entrepreneurs and businesses to be 151 assisted and the size and range of loans the lender intends to 152 make. 153 (b) To ensure that prospective lenders meet the 154 requirements of subparagraphs (a)2.-6., the request for proposal 155 must require submission of the following information: 156 1. A description of the types of entrepreneurs and small 157 businesses the lender has assisted in the past, and the average 158 size and terms of loans made in the past to such entities; 159 2. A description of the experience of members of the board 160 of directors and managers in the areas of microlending and small 161 business finance and development; 162 3. A description of the lender’s underwriting and credit 163 policies and procedures, credit decisionmaking process, 164 monitoring policies and procedures, and collection practices, 165 and samples of any currently used loan documentation; 166 4. A description of the nonstate funding sources that will 167 be used by the lender in conjunction with the awarded funds to 168 make microloans pursuant to this section; 169 5. The lender’s three most recent financial audits or, if 170 no prior audits have been completed, the lender’s three most 171 recent unaudited financial statements; and 172 6. A conflict of interest statement from the lender’s 173 governing board certifying that no board member, employee, 174 agent, or other person connected to or affiliated with the 175 lender is receiving or will receive any type of compensation or 176 remuneration from an entrepreneur or small business that has 177 received or will receive funds from the loan program. The 178 department may waive this requirement for good cause shown. 179 (4) CONTRACT AND AWARD OF FUNDS.— 180 (a) The selected lender must enter into a contract with the 181 department for a term of 3 years to receive loan program funds. 182 The amount of state funds used in any microloan made pursuant to 183 this part may not exceed 50 percent of the total microloan 184 amount. The department shall establish financial performance 185 measures and objectives for the loan program and for the lender 186 in order to maximize state funds. 187 (b) Funds awarded may be used only to provide direct 188 microloans to entrepreneurs and small businesses according to 189 the limitations, terms, and conditions provided in this part. 190 Except as provided in subsection (5), funds awarded may not be 191 used to pay administrative costs, underwriting costs, servicing 192 costs, or any other costs associated with providing microloans, 193 business management training, business development training, or 194 technical assistance. 195 (c) The lender shall reserve 10 percent of the total award 196 amount from the department to provide microloans pursuant to 197 this part to entrepreneurs and small businesses that employ no 198 more than five people and generate annual gross revenues 199 averaging no more than $250,000 per year for the last 2 years. 200 (d)1. If the loan program is appropriated funding in a 201 fiscal year, the department shall distribute such funds to the 202 lender within 30 days of the execution of the contract by the 203 department and the lender. 204 2. The total amount of funding allocated to the lender in a 205 fiscal year may not exceed the amount appropriated for the loan 206 program in the same fiscal year. If the funds appropriated to 207 the loan program in a fiscal year exceed the amount of funds 208 awarded to the lender, such excess funds shall revert to the 209 General Revenue Fund. 210 (e) Within 30 days of executing its contract with the 211 department, the lender must enter into a memorandum of 212 understanding with the network: 213 1. For the provision of business management training, 214 business development training, and technical assistance to 215 entrepreneurs and small businesses that receive microloans under 216 this part; and 217 2. To promote the program to underserved entrepreneurs and 218 small businesses. 219 (f) By September 1, 2014, the department shall review 220 industry best practices and determine the minimum business 221 management training, business development training, and 222 technical assistance that must be provided by the network to 223 achieve the goals of this part. 224 (g) The lender must meet the requirements of this section, 225 the terms of its contract with the department, and any other 226 applicable state or federal laws to be eligible to receive funds 227 in any fiscal year. The contract with the lender must specify 228 any sanctions for the lender’s failure to comply with the 229 contract or this part. 230 (5) FEES.— 231 (a) Except as provided in this section, the department may 232 not charge fees or interest or require collateral from the 233 lender. The department may charge a fee or interest of no 234 greater than 80 percent of the Federal Funds Rate as of the date 235 specified in the contract for funds awarded under the loan 236 program. The department shall require as collateral an 237 assignment of the notes receivable of the microloans made by the 238 lender under the loan program. 239 (b) The lender is entitled to retain a one-time 240 administrative servicing fee of 1 percent of the total award 241 amount to offset the administrative costs of underwriting and 242 servicing microloans made pursuant to this part. This fee may 243 not be charged to or paid by microloan borrowers participating 244 in the loan program. Except as provided in subsection (7)(c), 245 the lender may not be required to return this fee to the 246 department. The lender may not charge fees or costs except as 247 authorized in this paragraph. 248 (6) REPAYMENT OF AWARD FUNDS.— 249 (a) After collecting interest and any fees or costs 250 permitted under this part in satisfaction of all microloans made 251 pursuant to this part, the lender shall remit to the department 252 the microloan principal collected from all microloans made with 253 funds awarded under this part. Repayment of microloan principal 254 to the department may be deferred by the department for a period 255 not to exceed 6 months; however, the lender may not provide a 256 microloan under this part after the contract with the department 257 expires. 258 (b) If for any reason the lender is unable to make 259 repayments to the department in accordance with the contract, 260 the department may accelerate maturity of the awarded funds and 261 demand repayment in full. In this event, or if a lender violates 262 this part or the terms of its contract, the lender shall 263 surrender to the department possession of all collateral 264 required pursuant to subsection (5). Any loss or deficiency 265 greater than the value of the collateral may be recovered by the 266 department from the lender. 267 (c) In the event of a default as specified in the contract, 268 termination of the contract, or violation of this section, the 269 state may, in addition to any other remedy provided by law, 270 bring suit to enforce its interest. 271 (d) A microloan borrower’s default does not relieve the 272 lender of its obligation to repay an award to the department. 273 (7) CONTRACT TERMINATION.— 274 (a) The lender’s contract with the department may be 275 terminated by the department, and the lender required to 276 immediately return all state funds, including any fees it would 277 otherwise be entitled to retain pursuant to subsection (5) for 278 that fiscal year, upon a finding by the department that: 279 1. The lender has, within the previous 5 years, 280 participated in a state-funded economic development program in 281 this or any other state and was found to have failed to comply 282 with the requirements of that program; 283 2. The lender is currently in material noncompliance with 284 any statute, rule, or program administered by the department; 285 3. The lender or any member of its board of directors, 286 officers, partners, managers, or shareholders has pled no 287 contest or been found guilty, regardless of whether adjudication 288 was withheld, of any felony or any misdemeanor involving fraud, 289 misrepresentation, or dishonesty; 290 4. The lender failed to meet or agree to the terms of the 291 contract with the department or failed to meet this part; or 292 5. The department finds that the lender provided fraudulent 293 or misleading information to the department. 294 (b) The lender’s contract with the department may be 295 terminated by the department at any time for any reason upon 30 296 days’ notice by the department. In such a circumstance, the 297 lender shall return all awarded funds to the department within 298 60 days of the termination. However, the lender may retain any 299 fees it has collected pursuant to subsection (5). 300 (c) The lender’s contract with the department may be 301 terminated by the lender at any time for any reason upon 30 302 days’ notice by the lender. In such a circumstance, the lender 303 shall return all awarded funds to the department, including any 304 fees it has retained or would otherwise be entitled to retain 305 pursuant to subsection (5), within 30 days of the termination. 306 (8) AUDITS AND REPORTING.— 307 (a) The lender shall annually submit to the department a 308 financial audit performed by an independent certified public 309 accountant and an operational performance audit for the most 310 recently completed fiscal year. Both audits must indicate 311 whether any material weakness or instances of material 312 noncompliance are indicated in the audit. 313 (b) The lender shall submit quarterly reports to the 314 department as required by s. 288.9935(3). 315 (c) The lender shall make its books and records related to 316 the loan program available to the department or its designee for 317 inspection upon reasonable notice. 318 (9) ELIGIBILITY AND APPLICATION.— 319 (a) To be eligible for a microloan, an applicant must, at a 320 minimum, be an entrepreneur or small business located in this 321 state. 322 (b) Microloans may not be made if the direct or indirect 323 purpose or result of granting the microloan would be to: 324 1. Pay off any creditors of the applicant, including the 325 refund of a debt owed to a small business investment company 326 organized pursuant to 15 U.S.C. s. 681; 327 2. Provide funds, directly or indirectly, for payment, 328 distribution, or as a microloan to owners, partners, or 329 shareholders of the applicant’s business, except as ordinary 330 compensation for services rendered; 331 3. Finance the acquisition, construction, improvement, or 332 operation of real property which is, or will be, held primarily 333 for sale or investment; 334 4. Pay for lobbying activities; or 335 5. Replenish funds used for any of the purposes specified 336 in subparagraphs 1.-4. 337 (c) A microloan applicant shall submit a written 338 application in the format prescribed by the lender and shall pay 339 an application fee not to exceed $50 to the lender. 340 (d) The following minimum terms apply to a microloan made 341 by the lender: 342 1. The amount of a microloan may not exceed $50,000; 343 2. A borrower may not receive more than $75,000 per year in 344 total microloans; 345 3. A borrower may not receive more than two microloans per 346 year and may not receive more than five microloans in any 3-year 347 period; 348 4. The proceeds of the microloan may be used only for 349 startup costs, working capital, and the acquisition of 350 materials, supplies, furniture, fixtures, and equipment; 351 5. The period of any microloan may not exceed 1 year; 352 6. The interest rate may not exceed the prime rate 353 published in the Wall Street Journal as of the date specified in 354 the microloan, plus 1000 basis points; 355 7. All microloans must be personally guaranteed; 356 8. The borrower must participate in business management 357 training, business development training, and technical 358 assistance as determined by the lender in the microloan 359 agreement; 360 9. The borrower shall provide such information as required 361 by the lender, including monthly job creation and financial 362 data, in the manner prescribed by the lender; and 363 10. The lender may collect fees for late payments which are 364 consistent with standard business lending practices and may 365 recover costs and fees incurred for any collection efforts 366 necessitated by a borrower’s default. 367 (e) The department may not review microloans made by the 368 lender pursuant to this part prior to approval by the lender. 369 (10) STATEWIDE STRATEGIC PLAN.—In implementing this 370 section, the department shall be guided by the 5-year statewide 371 strategic plan adopted pursuant to s. 20.60(5). The department 372 shall promote and advertise the loan program by, among other 373 things, cooperating with government, nonprofit, and private 374 industry to organize, host, or participate in seminars and other 375 forums for entrepreneurs and small businesses. 376 (11) STUDY.—By December 31, 2014, the department shall 377 commence or commission a study to identify methods and best 378 practices that will increase access to credit to entrepreneurs 379 and small businesses in this state. The study must also explore 380 the ability of, and limitations on, Florida nonprofit 381 organizations and private financial institutions to expand 382 access to credit to entrepreneurs and small businesses in this 383 state. 384 (12) CREDIT OF THE STATE.—With the exception of funds 385 appropriated to the loan program by the Legislature, the credit 386 of the state may not be pledged. The state is not liable or 387 obligated in any way for claims on the loan program or against 388 the lender or the department. 389 Section 7. Section 288.9935, Florida Statutes, is created 390 to read: 391 288.9935 Microfinance Guarantee Program.— 392 (1) The Microfinance Guarantee Program is established in 393 the department. The purpose of the program is to stimulate 394 access to credit for entrepreneurs and small businesses in this 395 state by providing targeted guarantees to loans made to such 396 entrepreneurs and small businesses. Funds appropriated to the 397 program must be reinvested and maintained as a long-term and 398 stable source of funding for the program. 399 (2) As used in this section, the term “lender” means a 400 financial institution as defined in s. 655.005. 401 (3) The department must enter into a contract with 402 Enterprise Florida, Inc., to administer the Microfinance 403 Guarantee Program. In administering the program, Enterprise 404 Florida, Inc., must, at a minimum: 405 (a) Establish lender and borrower eligibility requirements 406 in addition to those provided in this section; 407 (b) Determine a reasonable leverage ratio of loan amounts 408 guaranteed to state funds; however, the leverage ratio may not 409 exceed 3 to 1; 410 (c) Establish reasonable fees and interest; 411 (d) Promote the program to financial institutions that 412 provide loans to entrepreneurs and small businesses in order to 413 maximize the number of lenders throughout the state which 414 participate in the program; 415 (e) Enter into a memorandum of understanding with the 416 network to promote the program to underserved entrepreneurs and 417 small businesses; 418 (f) Establish limits on the total amount of loan guarantees 419 a single lender can receive; 420 (g) Establish an average loan guarantee amount for loans 421 guaranteed under this section; 422 (h) Establish a risk-sharing strategy to be employed in the 423 event of a loan failure; and 424 (i) Establish financial performance measures and objectives 425 for the program in order to maximize state funds. 426 (4) Enterprise Florida, Inc., is limited to providing loan 427 guarantees for loans with total loan amounts of at least $50,000 428 and not more than $250,000. A loan guarantee may not exceed 50 429 percent of the total loan amount. 430 (5) Enterprise Florida, Inc., may not guarantee a loan if 431 the direct or indirect purpose or result of the loan would be 432 to: 433 (a) Pay off any creditors of the applicant, including the 434 refund of a debt owed to a small business investment company 435 organized pursuant to 15 U.S.C. s. 681; 436 (b) Provide funds, directly or indirectly, for payment, 437 distribution, or as a loan to owners, partners, or shareholders 438 of the applicant’s business, except as ordinary compensation for 439 services rendered; 440 (c) Finance the acquisition, construction, improvement, or 441 operation of real property which is, or will be, held primarily 442 for sale or investment; 443 (d) Pay for lobbying activities; or 444 (e) Replenish funds used for any of the purposes specified 445 in paragraphs (a) through (d). 446 (6) To be eligible to receive a loan guarantee under the 447 Microfinance Guarantee Program, a borrower must, at a minimum: 448 (a) Be an entrepreneur or small business located in this 449 state; 450 (b) Employ 25 or fewer people; 451 (c) Generate average annual gross revenues of $1.5 million 452 or less per year for the last 2 years; and 453 (d) Meet any additional requirements established by 454 Enterprise Florida, Inc. 455 (7) By October 1 of each year, Enterprise Florida, Inc., 456 shall submit a complete and detailed annual report to the 457 department for inclusion in the department’s report required 458 under s. 288.9935. The report must, at a minimum, provide: 459 (a) A comprehensive description of the program, including 460 an evaluation of its application and guarantee activities, 461 recommendations for change, and identification of any other 462 state programs that overlap with the program; 463 (b) An assessment of the current availability of and access 464 to credit for entrepreneurs and small businesses in this state; 465 (c) A summary of the financial and employment results of 466 the entrepreneurs and small businesses receiving loan 467 guarantees, including the number of full-time equivalent jobs 468 created as a result of the guaranteed loans and the amount of 469 wages paid to employees in the newly created jobs; 470 (d) Industry data about the borrowers, including the six 471 digit North American Industry Classification System (NAICS) 472 code; 473 (e) The name and location of lenders that receive loan 474 guarantees; 475 (f) The amount of state funds received by Enterprise 476 Florida, Inc.; 477 (g) The number of loan guarantee applications received; 478 (h) The number, duration, location, and amount of 479 guarantees made; 480 (i) The number and amount of guaranteed loans outstanding, 481 if any; 482 (j) The number and amount of guaranteed loans with payments 483 overdue, if any; 484 (k) The number and amount of guaranteed loans in default, 485 if any; 486 (l) The repayment history of the guaranteed loans made; and 487 (m) An evaluation of the program’s ability to meet the 488 financial performance measures and objectives specified in 489 subsection (3). 490 (8) The credit of the state or Enterprise Florida, Inc., 491 may not be pledged except for funds appropriated by law to the 492 Microfinance Guarantee Program. The state is not liable or 493 obligated in any way for claims on the program or against 494 Enterprise Florida, Inc., or the department. 495 Section 8. Section 288.9936, Florida Statutes, is created 496 to read: 497 288.9936 Annual report of the Microfinance Loan Program.— 498 (1) The department shall include in the report required by 499 s. 20.60(10) a complete and detailed annual report on the 500 Microfinance Loan Program. The report must include: 501 (a) A comprehensive description of the program, including 502 an evaluation of its application and funding activities, 503 recommendations for change, and identification of any other 504 state programs that overlap with the program; 505 (b) The financial institutions and the public and private 506 organizations and individuals participating in the program; 507 (c) An assessment of the current availability of and access 508 to credit for entrepreneurs and small businesses in this state; 509 (d) A summary of the financial and employment results of 510 the entities receiving microloans; 511 (e) The number of full-time equivalent jobs created as a 512 result of the guaranteed loans and the amount of wages paid to 513 employees in the newly created jobs; 514 (f) The number and location of prospective lenders that 515 responded to the department request for proposals; 516 (g) The amount of funds awarded to the lender; 517 (h) The number of microloan applications received by the 518 lender; 519 (i) The number, duration, and location of microloans made 520 by the lender; 521 (j) The number and amount of microloans outstanding, if 522 any; 523 (k) The number and amount of microloans with payments 524 overdue, if any; 525 (l) The number and amount of microloans in default, if any; 526 (m) The repayment history of the microloans made; 527 (n) The repayment history and performance of funding 528 awards; 529 (o) An evaluation of the program’s ability to meet the 530 financial performance measures and objectives specified in s. 531 288.9934; and 532 (p) A description and evaluation of the technical 533 assistance and business management and development training 534 provided by the network pursuant to its memorandum of 535 understanding with the lender. 536 (2) The department shall submit the report provided to the 537 department from Enterprise Florida, Inc., pursuant to 538 288.9935(7) for inclusion in the department’s annual report 539 required under s. 20.60(10). 540 (3) The department shall require at least quarterly reports 541 from the lender. The lender’s report must include, at a minimum, 542 information required by the department as specified in 543 subsection (1). The report must also include the number of 544 microloan applications received, the number of microloans made, 545 the amount and interest rate of each microloan made, the amount 546 of technical assistance or business development and management 547 training provided, the number of full-time equivalent jobs 548 created as a result of the microloans, the amount of wages paid 549 to employees in the newly created jobs, the six-digit North 550 American Industry Classification System (NAICS) code associated 551 with the borrower’s business, and the borrower’s locations. 552 (4) The Office of Program Policy Analysis and Government 553 Accountability shall conduct a study to evaluate the 554 effectiveness and return on investment of the State Small 555 Business Credit Initiative operated in this state pursuant to 12 556 U.S.C. ss. 5701 et seq. The office shall submit a report to the 557 President of the Senate and the Speaker of the House of 558 Representatives by January 1, 2015. 559 Section 9. Section 288.9937, Florida Statutes, is created 560 to read: 561 288.9937 Evaluation of programs.—The Office of Program 562 Policy Analysis and Government Accountability shall analyze, 563 evaluate, and determine the economic benefits, as defined in s. 564 288.005, of the first 3 years of the Microfinance Loan Program 565 and the Microfinance Guarantee Program. The analysis must also 566 evaluate the number of jobs created, the increase or decrease in 567 personal income, and the impact on state gross domestic product 568 from the direct, indirect, and induced effects of the state’s 569 investment. The analysis must also identify any inefficiencies 570 in the programs and provide recommendations for changes to the 571 programs. The office shall submit a report to the President of 572 the Senate and the Speaker of the House of Representatives by 573 January 1, 2018. This section expires January 31, 2018. 574 Section 10. (1) The executive director of the Department of 575 Economic Opportunity is authorized, and all conditions are 576 deemed to be met, to adopt emergency rules pursuant to ss. 577 120.536(1) and 120.54(4), Florida Statutes, for the purpose of 578 implementing this act. 579 (2) Notwithstanding any other provision of law, the 580 emergency rules adopted pursuant to subsection (1) remain in 581 effect for 6 months after adoption and may be renewed during the 582 pendency of procedures to adopt permanent rules addressing the 583 subject of the emergency rules. 584 (3) This section shall expire October 1, 2015. 585 Section 11. This act shall take effect July 1, 2014.