Florida Senate - 2016 SB 398
By Senator Soto
14-00541-16 2016398__
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 revising the legislative findings and intent to
5 include small technology companies; amending s.
6 288.9932, F.S.; defining the term “small technology
7 company”; amending s. 288.9935, F.S.; authorizing the
8 provision of loans to small technology companies
9 through the Microfinance Guarantee Program; defining
10 the term “applicant”; conforming provisions to changes
11 made by the act; providing an appropriation; providing
12 an effective date.
13
14 Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Section 288.9931, Florida Statutes, is amended
17 to read:
18 288.9931 Legislative findings and intent.—The Legislature
19 finds that the ability of entrepreneurs, and small businesses,
20 and small technology companies to access capital is vital to the
21 overall health and growth of this state’s economy; however,
22 access to capital is limited by the lack of available credit for
23 such entrepreneurs, and small businesses, and small technology
24 companies in this state. The Legislature further finds that
25 entrepreneurs, and small businesses, and small technology
26 companies could be assisted through the creation of a program
27 that will provide an avenue for entrepreneurs and small
28 businesses in this state to access credit. Additionally, the
29 Legislature finds that business management training, business
30 development training, and technical assistance are necessary to
31 ensure that entrepreneurs, and small businesses, and small
32 technology companies that receive credit develop the skills
33 necessary to grow and achieve long-term financial stability. The
34 Legislature intends to expand job opportunities for this state’s
35 workforce by expanding access to credit to entrepreneurs, and
36 small businesses, and small technology companies. Furthermore,
37 the Legislature intends to avoid duplicating existing programs
38 and to coordinate, assist, augment, and improve access to those
39 programs for entrepreneurs, and small businesses, and small
40 technology companies in this state.
41 Section 2. Subsection (6) is added to section 288.9932,
42 Florida Statutes, to read:
43 288.9932 Definitions.—As used in this part, the term:
44 (6) “Small technology company” means a business that:
45 (a) Is authorized to do business in this state and has its
46 principal place of business located in this state.
47 (b) Generated annual gross revenues of $250,000 or less per
48 year for the preceding 2 years.
49 (c) Has a net worth of less than $1 million.
50 (d) Primarily engages in business activities in the areas
51 of solar energy, biotechnology, biofuel, or commercial space
52 flight, or in the production of simulation software or sensors.
53 Section 3. Subsections (1), (2), (3), (7), and (8) of
54 section 288.9935, Florida Statutes, are amended to read:
55 288.9935 Microfinance Guarantee Program.—
56 (1) The Microfinance Guarantee Program is established in
57 the department. The purpose of the program is to stimulate
58 access to credit for entrepreneurs, and small businesses, and
59 small technology companies in this state by providing targeted
60 guarantees to loans made to such entrepreneurs, and small
61 businesses, and small technology companies. Funds appropriated
62 to the program must be reinvested and maintained as a long-term
63 and stable source of funding for the program.
64 (2) As used in this section, the term:
65 (a) “Applicant” has the same meaning as provided in s.
66 288.9932 and also includes a small technology company.
67 (b) “Lender” means a financial institution as defined in s.
68 655.005.
69 (3) The department must enter into a contract with
70 Enterprise Florida, Inc., to administer the Microfinance
71 Guarantee Program. In administering the program, Enterprise
72 Florida, Inc., must, at a minimum:
73 (a) Establish lender and borrower eligibility requirements
74 in addition to those provided in this section.;
75 (b) Determine a reasonable leverage ratio of loan amounts
76 guaranteed to state funds; however, the leverage ratio may not
77 exceed 3 to 1.;
78 (c) Establish reasonable fees and interest.;
79 (d) Promote the program to financial institutions that
80 provide loans to entrepreneurs, and small businesses, and small
81 technology companies in order to maximize the number of lenders
82 throughout the state which participate in the program.;
83 (e) Enter into a memorandum of understanding with the
84 network to promote the program to underserved entrepreneurs, and
85 small businesses, and small technology companies.;
86 (f) Establish limits on the total amount of loan guarantees
87 a single lender can receive.;
88 (g) Establish an average loan guarantee amount for loans
89 guaranteed under this section.;
90 (h) Establish a risk-sharing strategy to be employed in the
91 event of a loan failure.; and
92 (i) Establish financial performance measures and objectives
93 for the program in order to maximize the state funds.
94 (7) To be eligible to receive a loan guarantee under the
95 Microfinance Guarantee Program, a borrower must, at a minimum:
96 (a) Be an entrepreneur or small business located in this
97 state which employs;
98 (b) Employ 25 or fewer people and generates;
99 (c) Generate average annual gross revenues of $1.5 million
100 or less per year for the last 2 years or be a small technology
101 company.; and
102 (b)(d) Meet any additional requirements established by
103 Enterprise Florida, Inc.
104 (8) By October 1 of each year, Enterprise Florida, Inc.,
105 shall submit a complete and detailed annual report to the
106 department for inclusion in the department’s report required
107 under s. 20.60(10). The report must, at a minimum, provide:
108 (a) A comprehensive description of the program, including
109 an evaluation of its application and guarantee activities,
110 recommendations for change, and identification of any other
111 state programs that overlap with the program.;
112 (b) An assessment of the current availability of and access
113 to credit for entrepreneurs, and small businesses, and small
114 technology companies in this state.;
115 (c) A summary of the financial and employment results of
116 the entrepreneurs, and small businesses, and small technology
117 companies receiving loan guarantees, including the number of
118 full-time equivalent jobs created as a result of the guaranteed
119 loans and the amount of wages paid to employees in the newly
120 created jobs.;
121 (d) Industry data about the borrowers, including the six
122 digit North American Industry Classification System (NAICS)
123 code.;
124 (e) The name and location of lenders that receive loan
125 guarantees.;
126 (f) The amount of state funds received by Enterprise
127 Florida, Inc.;
128 (g) The number of loan guarantee applications received.;
129 (h) The number, duration, location, and amount of
130 guarantees made.;
131 (i) The number and amount of guaranteed loans outstanding,
132 if any.;
133 (j) The number and amount of guaranteed loans with payments
134 overdue, if any.;
135 (k) The number and amount of guaranteed loans in default,
136 if any.;
137 (l) The repayment history of the guaranteed loans made.;
138 and
139 (m) An evaluation of the program’s ability to meet the
140 financial performance measures and objectives specified in
141 subsection (3).
142 Section 4. For the 2016-2017 fiscal year, the sum of $50
143 million in nonrecurring funds from the General Revenue Fund is
144 appropriated to the Department of Economic Opportunity, to be
145 used exclusively for the purpose of guaranteeing loans for small
146 technology companies under s. 288.9935, Florida Statutes.
147 Section 5. This act shall take effect July 1, 2016.