Bill Text: FL S0216 | 2020 | Regular Session | Introduced
Bill Title: Assistance for Micro Businesses
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2020-03-14 - Died in Innovation, Industry, and Technology [S0216 Detail]
Download: Florida-2020-S0216-Introduced.html
Florida Senate - 2020 SB 216
By Senator Rodriguez
37-00417-20 2020216__
1 A bill to be entitled
2 An act relating to assistance for micro businesses;
3 creating s. 287.085, F.S.; defining the term “micro
4 business”; authorizing certain local governments to
5 set aside up to a specified percentage of funds for
6 procuring personal property and services for the
7 purpose of entering into contracts with micro
8 businesses; requiring that such contracts be
9 competitively solicited only among micro businesses;
10 amending s. 288.9931, F.S.; revising legislative
11 findings and intent; amending s. 288.9932, F.S.;
12 redefining the terms “applicant” and “entrepreneur”;
13 defining the term “micro business”; amending s.
14 288.9934, F.S.; providing eligibility for micro
15 businesses under the Microfinance Loan Program;
16 revising the date by which the Department of Economic
17 Opportunity must contract with a certain entity or
18 entities to administer the loan program; deleting
19 obsolete provisions; amending s. 288.9935, F.S.;
20 providing eligibility for micro businesses under the
21 Microfinance Guarantee Program; amending s. 288.9936,
22 F.S.; conforming a provision to changes made by the
23 act; amending s. 337.027, F.S.; providing eligibility
24 for micro businesses under the Department of
25 Transportation’s highway project business development
26 program; defining the term “micro business”; amending
27 s. 373.1135, F.S.; providing eligibility for micro
28 businesses under water management district programs
29 designed to help small businesses participate in
30 district procurement and contract activities; defining
31 the term “micro business”; providing an effective
32 date.
33
34 Be It Enacted by the Legislature of the State of Florida:
35
36 Section 1. Section 287.085, Florida Statutes, is created to
37 read:
38 287.085 Micro businesses; set-aside of funds for
39 procurement of personal property and services.—
40 (1) As used in this section, the term “micro business”
41 means an independently owned and operated for-profit business
42 entity, including any affiliates, which is located in this state
43 and which has 10 or fewer full-time employees or full-time
44 equivalent employees.
45 (2) Any county, municipality, community college, or
46 district school board may set aside up to XX percent or more of
47 the total amount of funds allocated for the procurement of
48 personal property and services for the purpose of entering into
49 contracts with micro businesses. Such contracts must be
50 competitively solicited only among micro businesses.
51 Section 2. Section 288.9931, Florida Statutes, is amended
52 to read:
53 288.9931 Legislative findings and intent.—The Legislature
54 finds that the ability of entrepreneurs, micro businesses, and
55 small businesses to access capital is vital to the overall
56 health and growth of this state’s economy; however, access to
57 capital is limited by the lack of available credit for
58 entrepreneurs, micro businesses, and small businesses in this
59 state. The Legislature further finds that entrepreneurs, micro
60 businesses, and small businesses could be assisted through the
61 creation of a program that will provide an avenue for
62 entrepreneurs, micro businesses, and small businesses in this
63 state to access credit. Additionally, the Legislature finds that
64 business management training, business development training, and
65 technical assistance are necessary to ensure that entrepreneurs,
66 micro businesses, and small businesses that receive credit
67 develop the skills necessary to grow and achieve long-term
68 financial stability. The Legislature intends to expand job
69 opportunities for this state’s workforce by expanding access to
70 credit to entrepreneurs, micro businesses, and small businesses.
71 Furthermore, the Legislature intends to avoid duplicating
72 existing programs and to coordinate, assist, augment, and
73 improve access to those programs for entrepreneurs, micro
74 businesses, and small businesses in this state.
75 Section 3. Present subsections (4) and (5) of section
76 288.9932, Florida Statutes, are redesignated as subsections (5)
77 and (6), respectively, a new subsection (4) is added to that
78 section, and subsections (1) and (3) of that section are
79 amended, to read:
80 288.9932 Definitions.—As used in this part, the term:
81 (1) “Applicant” means an entrepreneur, a micro business, or
82 a small business that applies to a loan administrator for a
83 microloan.
84 (3) “Entrepreneur” means an individual residing in this
85 state who desires to assume the risk of organizing, managing,
86 and operating a micro business or a small business in this
87 state.
88 (4) “Micro business” has the same meaning as provided in s.
89 287.085.
90 Section 4. Subsections (1) and (3), paragraphs (b), (c),
91 (e), and (f) of subsection (4), paragraph (a) of subsection (9),
92 and subsections (10) and (11) of section 288.9934, Florida
93 Statutes, are amended to read:
94 288.9934 Microfinance Loan Program.—
95 (1) PURPOSE.—The Microfinance Loan Program is established
96 in the department to make short-term, fixed-rate microloans in
97 conjunction with business management training, business
98 development training, and technical assistance to entrepreneurs
99 and newly established or growing micro businesses and small
100 businesses for startup costs, working capital, and the
101 acquisition of materials, supplies, furniture, fixtures, and
102 equipment. Participation in the loan program is intended to
103 enable entrepreneurs, micro businesses, and small businesses to
104 access private financing upon completing the loan program.
105 (3) REQUEST FOR PROPOSAL.—
106 (a) By December 1, 2020 2014, the department shall contract
107 with at least one but not more than three entities to administer
108 the loan program for a term of 3 years. The department shall
109 award the contract in accordance with the request for proposal
110 requirements in s. 287.057 to an entity that:
111 1. Is a corporation registered in this state;
112 2. Does not offer checking accounts or savings accounts;
113 3. Demonstrates that its board of directors and managers
114 are experienced in microlending and small business finance and
115 development;
116 4. Demonstrates that it has the technical skills and
117 sufficient resources and expertise to:
118 a. Analyze and evaluate applications by entrepreneurs,
119 micro businesses, and small businesses applying for microloans;
120 b. Underwrite and service microloans provided pursuant to
121 this part; and
122 c. Coordinate the provision of such business management
123 training, business development training, and technical
124 assistance as required by this part;
125 5. Demonstrates that it has established viable, existing
126 partnerships with public and private nonstate funding sources,
127 economic development agencies, and workforce development and job
128 referral networks; and
129 6. Demonstrates that it has a plan that includes proposed
130 microlending activities under the loan program, including, but
131 not limited to, the types of entrepreneurs and businesses to be
132 assisted and the size and range of loans the loan administrator
133 intends to make.
134 (b) To ensure that prospective loan administrators meet the
135 requirements of subparagraphs (a)2.-6., the request for proposal
136 must require submission of the following information:
137 1. A description of the types of entrepreneurs, micro
138 businesses, and small businesses the loan administrator has
139 assisted in the past, and the average size and terms of loans
140 made in the past to such entities;
141 2. A description of the experience of members of the board
142 of directors and managers in the areas of microlending and small
143 business finance and development;
144 3. A description of the loan administrator’s underwriting
145 and credit policies and procedures, credit decisionmaking
146 process, monitoring policies and procedures, and collection
147 practices, and samples of any currently used loan documentation;
148 4. A description of the nonstate funding sources that will
149 be used by the loan administrator in conjunction with the state
150 funds to make microloans pursuant to this section;
151 5. The loan administrator’s three most recent financial
152 audits or, if no prior audits have been completed, the loan
153 administrator’s three most recent unaudited financial
154 statements; and
155 6. A conflict of interest statement from the loan
156 administrator’s board of directors certifying that a board
157 member, employee, or agent, or an immediate family member
158 thereof, or any other person connected to or affiliated with the
159 loan administrator, is not receiving or will not receive any
160 type of compensation or remuneration from an entrepreneur, a
161 micro business, or a small business that has received or will
162 receive funds from the loan program. The department may waive
163 this requirement for good cause shown. As used in this
164 subparagraph, the term “immediate family” means a parent, child,
165 or spouse, or any other relative by blood, marriage, or
166 adoption, of a board member, employee, or agent of the loan
167 administrator.
168 (4) CONTRACT AND AWARD OF FUNDS.—
169 (b) State funds may be used only to provide direct
170 microloans to entrepreneurs, micro businesses, and small
171 businesses according to the limitations, terms, and conditions
172 provided in this part. Except as provided in subsection (5),
173 state funds may not be used to pay administrative costs,
174 underwriting costs, servicing costs, or any other costs
175 associated with providing microloans, business management
176 training, business development training, or technical
177 assistance.
178 (c) The loan administrator shall reserve 10 percent of the
179 total award amount from the department to provide microloans
180 pursuant to this part to entrepreneurs, micro businesses, and
181 small businesses that employ no more than five people and
182 generate annual gross revenues averaging no more than $250,000
183 per year for the last 2 years.
184 (e) Within 30 days of executing its contract with the
185 department, the loan administrator must enter into a memorandum
186 of understanding with the network:
187 1. For the provision of business management training,
188 business development training, and technical assistance to
189 entrepreneurs, micro businesses, and small businesses that
190 receive microloans under this part; and
191 2. To promote the program to underserved entrepreneurs,
192 micro businesses, and small businesses.
193 (f) By September 1, 2014, the department shall review
194 industry best practices and determine the minimum business
195 management training, business development training, and
196 technical assistance that must be provided by the network to
197 achieve the goals of this part.
198 (9) ELIGIBILITY AND APPLICATION.—
199 (a) To be eligible for a microloan, an applicant must, at a
200 minimum, be an entrepreneur, a micro business, or a small
201 business located in this state.
202 (10) STATEWIDE STRATEGIC PLAN.—In implementing this
203 section, the department shall be guided by the 5-year statewide
204 strategic plan adopted pursuant to s. 20.60(5). The department
205 shall promote and advertise the loan program by, among other
206 things, cooperating with government, nonprofit, and private
207 industry to organize, host, or participate in seminars and other
208 forums for entrepreneurs, micro businesses, and small
209 businesses.
210 (11) STUDY.—By December 31, 2014, the department shall
211 commence or commission a study to identify methods and best
212 practices that will increase access to credit to entrepreneurs
213 and small businesses in this state. The study must also explore
214 the ability of, and limitations on, Florida nonprofit
215 organizations and private financial institutions to expand
216 access to credit to entrepreneurs and small businesses in this
217 state.
218 Section 5. Subsections (1), (3), (7), and (8) of section
219 288.9935, Florida Statutes, are amended to read:
220 288.9935 Microfinance Guarantee Program.—
221 (1) The Microfinance Guarantee Program is established in
222 the department. The purpose of the program is to stimulate
223 access to credit for entrepreneurs, micro businesses, and small
224 businesses in this state by providing targeted guarantees to
225 loans made to such entrepreneurs, micro businesses, and small
226 businesses. Funds appropriated to the program must be reinvested
227 and maintained as a long-term and stable source of funding for
228 the program.
229 (3) The department must enter into a contract with
230 Enterprise Florida, Inc., to administer the Microfinance
231 Guarantee Program. In administering the program, Enterprise
232 Florida, Inc., must, at a minimum:
233 (a) Establish lender and borrower eligibility requirements
234 in addition to those provided in this section;
235 (b) Determine a reasonable leverage ratio of loan amounts
236 guaranteed to state funds; however, the leverage ratio may not
237 exceed 3 to 1;
238 (c) Establish reasonable fees and interest;
239 (d) Promote the program to financial institutions that
240 provide loans to entrepreneurs, micro businesses, and small
241 businesses in order to maximize the number of lenders throughout
242 the state which participate in the program;
243 (e) Enter into a memorandum of understanding with the
244 network to promote the program to underserved entrepreneurs,
245 micro businesses, and small businesses;
246 (f) Establish limits on the total amount of loan guarantees
247 a single lender can receive;
248 (g) Establish an average loan guarantee amount for loans
249 guaranteed under this section;
250 (h) Establish a risk-sharing strategy to be employed in the
251 event of a loan failure; and
252 (i) Establish financial performance measures and objectives
253 for the program in order to maximize the state funds.
254 (7) To be eligible to receive a loan guarantee under the
255 Microfinance Guarantee Program, a borrower must, at a minimum:
256 (a) Be an entrepreneur, a micro business, or a small
257 business located in this state;
258 (b) Employ 25 or fewer people;
259 (c) Generate average annual gross revenues of $1.5 million
260 or less per year for the last 2 years; and
261 (d) Meet any additional requirements established by
262 Enterprise Florida, Inc.
263 (8) By October 1 of each year, Enterprise Florida, Inc.,
264 shall submit a complete and detailed annual report to the
265 department for inclusion in the department’s report required
266 under s. 20.60(10). The report must, at a minimum, provide:
267 (a) A comprehensive description of the program, including
268 an evaluation of its application and guarantee activities,
269 recommendations for change, and identification of any other
270 state programs that overlap with the program;
271 (b) An assessment of the current availability of and access
272 to credit for entrepreneurs, micro businesses, and small
273 businesses in this state;
274 (c) A summary of the financial and employment results of
275 the entrepreneurs, micro businesses, and small businesses
276 receiving loan guarantees, including the number of full-time
277 equivalent jobs created as a result of the guaranteed loans and
278 the amount of wages paid to employees in the newly created jobs;
279 (d) Industry data about the borrowers, including the six
280 digit North American Industry Classification System (NAICS)
281 code;
282 (e) The name and location of lenders that receive loan
283 guarantees;
284 (f) The amount of state funds received by Enterprise
285 Florida, Inc.;
286 (g) The number of loan guarantee applications received;
287 (h) The number, duration, location, and amount of
288 guarantees made;
289 (i) The number and amount of guaranteed loans outstanding,
290 if any;
291 (j) The number and amount of guaranteed loans with payments
292 overdue, if any;
293 (k) The number and amount of guaranteed loans in default,
294 if any;
295 (l) The repayment history of the guaranteed loans made; and
296 (m) An evaluation of the program’s ability to meet the
297 financial performance measures and objectives specified in
298 subsection (3).
299 Section 6. Subsection (1) of section 288.9936, Florida
300 Statutes, is amended to read:
301 288.9936 Annual report of the Microfinance Loan Program.—
302 (1) The department shall include in the report required by
303 s. 20.60(10) a complete and detailed annual report on the
304 Microfinance Loan Program. The report must include:
305 (a) A comprehensive description of the program, including
306 an evaluation of its application and funding activities,
307 recommendations for change, and identification of any other
308 state programs that overlap with the program;
309 (b) The financial institutions and the public and private
310 organizations and individuals participating in the program;
311 (c) An assessment of the current availability of and access
312 to credit for entrepreneurs, micro businesses, and small
313 businesses in this state;
314 (d) A summary of the financial and employment results of
315 the entities receiving microloans;
316 (e) The number of full-time equivalent jobs created as a
317 result of the microloans and the amount of wages paid to
318 employees in the newly created jobs;
319 (f) The number and location of prospective loan
320 administrators that responded to the department request for
321 proposals;
322 (g) The amount of state funds received by the loan
323 administrator;
324 (h) The number of microloan applications received by the
325 loan administrator;
326 (i) The number, duration, and location of microloans made
327 by the loan administrator, including the aggregate number of
328 microloans made to minority business enterprises if available;
329 (j) The number and amount of microloans outstanding, if
330 any;
331 (k) The number and amount of microloans with payments
332 overdue, if any;
333 (l) The number and amount of microloans in default, if any;
334 (m) The repayment history of the microloans made;
335 (n) The repayment history and performance of funding
336 awards;
337 (o) An evaluation of the program’s ability to meet the
338 financial performance measures and objectives specified in s.
339 288.9934; and
340 (p) A description and evaluation of the technical
341 assistance and business management and development training
342 provided by the network pursuant to its memorandum of
343 understanding with the loan administrator.
344 Section 7. Present subsection (3) of section 337.027,
345 Florida Statutes, is redesignated as subsection (4), a new
346 subsection (3) is added to that section, and subsection (1) of
347 that section is amended, to read:
348 337.027 Authority to implement a business development
349 program.—
350 (1) The department may establish a program for highway
351 projects which would assist small businesses and micro
352 businesses. The purpose of this program is to increase
353 competition, lower prices, and provide increased support to meet
354 the department’s future work program. The program may include,
355 but is not limited to, setting aside contracts, providing
356 preference points for the use of small businesses and micro
357 businesses, providing special assistance in bidding and contract
358 completion, waiving bond requirements, and implementing other
359 strategies that would increase competition.
360 (3) As used in this section, the term “micro business” has
361 the same meaning as provided in s. 287.085.
362 Section 8. Section 373.1135, Florida Statutes, is amended
363 to read:
364 373.1135 Small business and micro business program.—Each
365 water management district, as created in this chapter, may
366 implement a small business and micro business program designed
367 to help small businesses and micro businesses, including those
368 owned by women and minorities, to participate in district
369 procurement and contract activities. The purpose of the program
370 is to spur economic development and support small businesses and
371 micro businesses, including women-owned and minority-owned
372 businesses, to successfully expand in the marketplace. Program
373 specifics shall be provided by rule pursuant to s. 373.113. As
374 used in this section, the term “micro business” has the same
375 meaning as provided in s. 287.085.
376 Section 9. This act shall take effect July 1, 2020.
