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.