The Florida Senate

290.037  Community development deferred payment loan program.--

(1)  The secretary is authorized to make loans, within the limits of specific appropriations, to eligible applicants for the following purposes:

(a)  Establishment of a new business venture;

(b)  Financial assistance to an existing business venture located within the community development corporation service area; and

(c)  New construction or substantial rehabilitation of housing to be utilized by low-income families and individuals.

(2)  A community development corporation applying for a loan pursuant to this section must submit the information required by s. 290.036(2).

(3)  In no case shall loans to one community development corporation exceed 40 percent of the total annual appropriation for loans during any given year.

(4)  A community development corporation that receives a loan shall submit to the department an annual audit performed by an independent certified public accountant; however, this subsection shall not be construed to require the submittal of more than one audit by an individual community development corporation submitting pursuant to s. 290.036.

(5)  In evaluating proposals pursuant to this section, the secretary shall consider:

(a)  The economic feasibility of the project and the capacity of the venture to repay the loan;

(b)  The relative degree of distress of the target area;

(c)  The ratio of private and nonstate public money committed to a project to the amount of state money to be committed;

(d)  The demonstrated inability of the borrower to secure funding from conventional sources at the terms offered by the community development corporation;

(e)  The number of temporary and permanent jobs generated by the project;

(f)  The overall net positive impact of the project on local economic and social conditions;

(g)  The degree to which the project directly benefits or provides assistance to low-income or job-displaced individuals; and

(h)  The demonstrable capacity of the community development corporation to see that the project is successfully carried out.

(6)  All loans to the community development corporation shall be interest free and shall be repaid within 15 years on a basis approved by the secretary, except as provided in subsection (7).

(7)  Upon the termination of any project as a result of the sale or failure of the business, all recoverable state funds shall be returned to the department for deposit into the Operating Trust Fund. When losses are incurred, the amount returned to the state shall be reduced so that the state absorbs losses in proportion to the amount of equity held by the community development corporation compared to the total equity held in the business venture or the amount lost by all other comparable creditors in those cases in which a loan has been extended to a business venture by a community development corporation.

(8)  This section shall stand repealed on June 30, 1998.

History.--s. 8, ch. 80-250; s. 13, ch. 82-119; s. 5, ch. 84-240; s. 15, ch. 91-262; s. 32, ch. 93-120.

Note.--Former s. 288.608.